Alternative measure of financial development and investment-cash flow sensitivity:evidence from an emerging economy

作     者：Gaurav Gupta Jitendra Mahakud 

作者机构：VIT Business SchoolVellore Institute of TechnologyVellore 632014India Department of Humanities and Social SciencesIndian Institute of Technology KharagpurKharagpurWest Bengal 721302India 

出 版 物：《Financial Innovation》 (金融创新（英文）)

年 卷 期：2019年第5卷第1期

页      面：1-28页

核心收录：

学科分类：0202[经济学-应用经济学] 02[经济学] 020205[经济学-产业经济学] 

主　　题：Business groups Cash flow Corporate investment Financial constraints Financial development Firm size Generalized method of moments 

摘      要：This study examines the impact of financial development on corporate investment in terms of their influence on financing *** study also tries to find the effect of financial development on the investment-cash flow sensitivity across the size,degree of financial constraints and group affiliation of the *** study employs dynamic panel data model or more specifically system generalized method of moments(GMM)estimation *** estimation results reveal that cash flow affects the investment decision of the company positively,which implies that Indian firms are financially ***,we observe that financial development reduces the investment-cash flow sensitivity and the effect of financial development is more prominent for small size and standalone *** results are robust across the period and,for both financially constrained and unconstrained *** study contributes to the existing literature by analyzing the impact of financial development on the role of cash flow in determining investments undertaken by the Indian firms,which is an unexplored issue from an emerging market perspective.