Investment, irreversibility, and financing constraints: Evidence from a panel of transition economies

Guariglia, A., Tsoukalas, J. and Tsoukas, S. (2012) Investment, irreversibility, and financing constraints: Evidence from a panel of transition economies. Economics Letters, 117(3), pp. 582-584. (doi:10.1016/j.econlet.2012.07.031)

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Abstract

We investigate the link between investment-cash flow sensitivities and irreversibility in a panel of unlisted firms from transition economies. We observe that only firms facing low irreversibility exhibit high and precisely determined sensitivities. Our findings provide a new explanation for why some financially constrained firms may exhibit low sensitivities.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Tsoukalas, Professor John and Tsoukas, Professor Serafeim
Authors: Guariglia, A., Tsoukalas, J., and Tsoukas, S.
Subjects:H Social Sciences > HG Finance
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Economics Letters
ISSN:0165-1765

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