Document Server@UHasselt >
Research >
Research publications >

Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/8418

Title: Investment-cash flow sensitivities or cash-cash flow sensitivities? An evaluative framework for measures of financial constraints
Authors: D'ESPALLIER, Bert
Issue Date: 2008
Citation: Journal of Business Finance and Accounting, 35(7-8). p. 943-968
Abstract: We evaluate two models commonly used for measuring financial constraints in their ability to discriminate between constrained and unconstrained firms. We compute firm-specific estimates for the cash flow sensitivity of investment (CFSI), and the cash flow sensitivity of cash (CFSC) and provide a framework that summarizes the performance of each model into a single numerical metric. We argue that this ‘ex-post’ approach provides interesting advantages over the traditional operationalization, in which firms are classified ‘ex-ante’ on a theoretical basis. Our findings suggest the superiority of the CFSI model over the CFSC model for a sample of manufacturing SMEs in Belgium.
URI: http://hdl.handle.net/1942/8418
DOI: 10.1111/j.1468-5957.2008.02101.x
ISI #: 000259681400007
ISSN: 0306-686X
Category: A1
Type: Journal Contribution
Validation: ecoom, 2009
Appears in Collections: Research publications

Files in This Item:

There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.