Investment-Cash Flow Sensitivities Are Not Valid Measures of Financing Constraints

Steven Kaplan () and Luigi Zingales

The Quarterly Journal of Economics, 2000, vol. 115, issue 2, 707-712

Abstract: Work by Kaplan and Zingales provides both theoretical arguments and empirical evidence that investment-cash flow sensitivities are not good indicators of financing constraints. Fazzari, Hubbard, and Petersen [this Journal] criticize those findings. In this note we explain how the Fazzari et al. criticisms are either very supportive of the claims in earlier work by Kaplan and Zingales or incorrect. We conclude with a discussion of unanswered questions.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (419)

Downloads: (external link)
http://hdl.handle.net/10.1162/003355300554782 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Investment-Cash Flow Sensitivities are not Valid Measures of Financing Constraints (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:115:y:2000:i:2:p:707-712.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().