Investment, irreversibility, and financing constraints: Evidence from a panel of transition economies

Alessandra Guariglia, John Tsoukalas and Serafeim Tsoukas

Economics Letters, 2012, vol. 117, issue 3, 582-584

Abstract: Focusing on a panel of unlisted firms from transition economies, we observe that only firms facing low irreversibility exhibit high and significant investment-cash flow sensitivities. Our findings provide a new explanation for why some financially constrained firms may exhibit low sensitivities.

Keywords: Investment; Irreversibility; Cash flow; Financing constraints (search for similar items in EconPapers)
JEL-codes: D21 E22 E32 G31 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:3:p:582-584

DOI: 10.1016/j.econlet.2012.07.031

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