What Drives Negative Investment-Cash Flow Sensitivities? Revenue Effect Versus Corporate Life-Cycle Dynamics
Abstract In order to identify the economic driver of negative investment-cash flow sensitivities (ICFS), we derive testable predictions from extending a theoretical investment model with endogenous financing costs (“revenue effect”) and contrast them with the corporate life-cycle hypothesis. We find...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer
2023-06-01
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| Series: | Schmalenbach Journal of Business Research |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s41471-023-00164-0 |