How Do Misvalued Firms Deploy Internal Cash Flow?
研究了当公司在资本市场被错误估值时，如何在不同用途间配置内部现金流，发现被高估的公司会更多减少外部融资，更少用于投资和现金储蓄。
ABSTRACT We examine how firms deploy internal cash flow across primary uses when they are misvalued in capital markets. Our integrated regression framework depicts a complete picture of what firms do with cash flow by jointly estimating the cash flow sensitivities of various uses. The results show that, given an additional dollar of cash flow, overvalued firms allocate more to reduce external financing and less to investment and cash savings. Collectively, our findings illustrate how firms tune cash flow allocation to absorb the valuation shocks, revealing an internal financing channel through which misvaluation impacts corporate decisions and the real economy.