The investment-cash flow sensitivity and the financing constraints hypothesis for emerging markets: a bibliometric and systematic literature review

Abstract

Purpose: The literature on financing constraints in emerging markets is still under-researched and is often described as a “black box.” This study aims to shed light on this underexplored area for emerging economies. Specifically, it attempts to understand the phenomenon of financing constraints through a systematic review and bibliometric analysis. Design/methodology/approach: A systematic literature review and bibliometric analysis are used to identify the main features of investment-cash flow sensitivity and the financing constraints hypothesis in the context of emerging markets. Findings: Financing constraints and investment-cash flow sensitivity in emerging markets should be analyzed in light of capital market imperfections, financial liberalization and macroeconomic conditions. Research limitations/implications: This study is expected to serve as a valuable resource for researchers interested in the financing challenges faced by firms in emerging economies. Originality/value: To the best of the author’s knowledge, this is the first comprehensive systematic and bibliometric literature review that examines the distinct characteristics of the financing constraints hypothesis on investment decisions in emerging markets.