... implicitly, and using both OLS and q measurement-error consistent estimators. Because a large and growing fraction of U.S. firms yield negative cash flow, the corporate propensity to dissave is a systematic phenomenon. * We would like to thank Ivo Welch (the Editor) and anonymous referee...

... Financial development q measurement error G15 G31 Prior literature offers contrasting conclusions regarding firms’ propensity to save/disburse funds out of cash flow. Almeida et al. (2004) show that because of their restricted access to external finance, financially...