Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967975 | Journal of Multinational Financial Management | 2011 | 20 Pages |
Abstract
A controversy exists on the use of the investment–cash flow sensitivity as a measure of financing constraints of firms. We re-examine this controversy by analyzing firms affiliated to Indian business groups. We find a strong investment–cash flow sensitivity for both group-affiliated and independent firms, but no significant difference in the sensitivity between them. Additional tests consistently demonstrate that investment–cash flow sensitivity of Indian group affiliated firms is not significantly lower relative to unaffiliated firms.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Rejie George, Rezaul Kabir, Jing Qian,