Investment–Cash Flow Sensitivity: Fact or Fiction?
研究了在解决q值测量误差后，内部资金是否影响投资，发现现金流仍是投资的重要决定因素，并提出了使用两种q替代指标作为工具变量的方法。
We examine whether internal funds matter for investment when the measurement error in q is addressed. By carefully employing methodologies that tackle the measurement error in q , we show that cash flow is a significant determinant of investment. We also find that an analyst-forecast-based q measure is not superior to a stock-market-based q measure. We further propose an approach that uses two alternative proxies of q as instruments for addressing measurement error. Our evidence indicates that instrumental-variables-type generalized method of moments estimators yield empirically well-specified models.