<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The paper focuses on assessment of the sensitivity of investment on cash flow (ICFS) made by listed companies in Poland. Achieving this goal will also involve analysing and drawing conclusions about the balance-sheet channel of monetary transmission. An empirical part uses data from financial statements for Poland derived from Emerging Markets Information Services (EMIS), related to companies listed on the Warsaw Stock Exchange and NewConnect. Estimations were made using the Ordinary Least Squares method with robust standard errors, and results made it clear that cash flow has a positive significant impact, indicating that most companies operate on the imperfect and incomplete market, and with constrained or costly access to external financing. Further, it is found that the impact is significantly strong in the slowdown, as financial constraints are more binding. These results seem to confirm that the balance-sheet channel of monetary transmission is operative in Poland.</p></abstract>

The paper focuses on assessment of the sensitivity of investment on cash flow (ICFS) made by listed companies in Poland. Achieving this goal will also involve analysing and drawing conclusions about the balance-sheet channel of monetary transmission. An empirical part uses data from financial statements for Poland derived from Emerging Markets Information Services (EMIS), related to companies listed on the Warsaw Stock Exchange and NewConnect. Estimations were made using the Ordinary Least Squares method with robust standard errors, and results made it clear that cash flow has a positive significant impact, indicating that most companies operate on the imperfect and incomplete market, and with constrained or costly access to external financing. Further, it is found that the impact is significantly strong in the slowdown, as financial constraints are more binding. These results seem to confirm that the balance-sheet channel of monetary transmission is operative in Poland.

Cash flow sensitivity of investment: Evidence from the Polish listed companies

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Cash flow sensitivity of investment: Evidence from the Polish listed companies"}

The paper focuses on assessment of the sensitivity of investment on cash flow (ICFS) made by listed companies in Poland. Achieving this goal will also involve...

Cash flow sensitivity of investment: Evidence from the Polish listed companies

Published Online: Oct 28, 2020

Page range: 157 - 171

DOI: https://doi.org/10.2478/ceej-2020-0009

Keywords
investment, cash flow, ICFS, balance sheet channel, financial accelerator

© 2020 Marian Nehrebecki, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Cash flow sensitivity of investment: Evidence from the Polish listed companies

Published Online: Oct 28, 2020

Page range: 157 - 171

DOI: https://doi.org/10.2478/ceej-2020-0009

Keywordsinvestment, cash flow, ICFS, balance sheet channel, financial accelerator

© 2020 Marian Nehrebecki, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
investment, cash flow, ICFS, balance sheet channel, financial accelerator