Investment-cash Flow Sensitivities are Not Valid Measures of Financing Constraints
| Author | : Steven N. Kaplan |
| Publisher | : |
| Total Pages | : 24 |
| Release | : 2000 |
| ISBN-10 | : IND:30000067204853 |
| ISBN-13 | : |
| Rating | : 4/5 ( Downloads) |
Book Synopsis Investment-cash Flow Sensitivities are Not Valid Measures of Financing Constraints by : Steven N. Kaplan
Download or read book Investment-cash Flow Sensitivities are Not Valid Measures of Financing Constraints written by Steven N. Kaplan and published by . This book was released on 2000 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow sensitivities are not good indicators of financing constraints. Fazzari, Hubbard and Petersen [1999] criticize those findings. In this note, we explain how the Fazzari et al. [1999] criticisms are either very supportive of the claims in Kaplan and Zingales [1997] or incorrect. We conclude with a discussion of unanswered questions.
