@techreport{NBERw5499,
 title = "Cash Flow and Investment: Evidence from Internal Capital Markets",
 author = "Owen Lamont",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5499",
 year = "1996",
 month = "March",
 URL = "http://www.nber.org/papers/w5499",
 abstract = {Using data from the 1986 oil price decrease, I examine the capital expenditures of non-oil subsidiaries of oil companies.  I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent.  The results support this joint hypothesis: oil companies significantly reduced their non-oil investment compared to the median industry investment.  The 1986 decline in investment was concentrated in non-oil units that were subsidized by the rest of the company in 1985.},
}