Cash-flow sensitivities and the allocation of internal cash flow

• Main Authors: Chang, Xin, Dasgupta, Sudipto, Wong, George, Yao, Jiaquan
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2015
• Subjects: DRNTU::Business::Finance::Money
• Online Access: https://hdl.handle.net/10356/107039; http://hdl.handle.net/10220/25323
• Institution: Nanyang Technological University

We study how firms allocate cash flow by estimating the cash-flow sensitivities of various uses of cash flow. We decompose cash flow into a transitory and a permanent component and focus on the allocation of the transitory component, which by construction contains little information about future gro...