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Cited by 663

The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.

How Sensitive Is Investment to Cash Flow When Financing Is Frictionless?

Open access
Alti, Aydoḡan·2003·The Journal of Finance
DOI 10.1111/1540-6261.00542
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Abstract

I analyze the sensitivity of a firm's investment to its own cash flow in the benchmark case where financing is frictionless. This sensitivity has been proposed as a measure of financing constraints in earlier studies. I find that the investment–cash flow sensitivities that obtain in the frictionless benchmark are very similar, both in magnitude and in patterns they exhibit, to those observed in the data. In particular, the sensitivity is higher for firms with high growth rates and low dividend payout ratios. Tobin's q is shown to be a more noisy measure of near‐term investment plans for these firms.

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Metadata

Authors
Alti, A.
Venue
The Journal of Finance
Publisher
Wiley
Published
2003-03-21
Volume
58
Issue
2
Pages
707-722
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/1540-6261.00542
OpenAlex
W3124422916
Cited by
663
References
2
FWCI
78.33
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: How Sensitive Is Investment to Cash Flow When Financing Is Frictionless? https://app.cochat.ai/papers/10.1111/1540-6261.00542
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Alti, A. (2003). How Sensitive Is Investment to Cash Flow When Financing Is Frictionless? The Journal of Finance. https://doi.org/10.1111/1540-6261.00542

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.