Investment-Cash Flow Sensitivities are not Valid Measures of Financing Constraints

Steven Kaplan () and Luigi Zingales

No 7659, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

Date: 2000-04
New Economics Papers: this item is included in nep-cfn
Note: CF
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (408)

Published as "Do Investment-Cash Flow Sensitivities Provide Useful Measuresof Financing Constraints?", Quarterly Journal of Economics, Vol. 107, no. 1(February 1997): 16-215.

Downloads: (external link)
http://www.nber.org/papers/w7659.pdf (application/pdf)

Related works:
Journal Article: 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:nbr:nberwo:7659

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w7659

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().