I am currently writing a masters thesis within corporate finance and am seeking help to understand some concepts and theories in regards to some regression results i have obtained through empirical employement.

My thesis is on asset tangibility, financial constraints and corporate investment. To some extend i follow a paper by Almeida and Campello (2007).

I am looking to explain the effect of asset tangibility on investment-cashflow sensitivity in financially constrained and unconstrained firms. The idea is that the more tangible assets a firm have, the more it can invest as it can pledge these assets as collateral and borrow more. Meaning that more tangible assets amplify the investment-cashflow sensitivity (i guess)

While the paper by almeida et al. use data from 1985-2000 i am looking to use more present data with the time period 2001-2022.

I have followed the methodology by the paper, creating the exact same variables and utilized the same regression methodology. However i do find quite different results than they do.

While the paper by Almeida and campello only investigate the effect on corporate investment, i have chosen to also investigate the effect of asset tangibility on leverage and payout in the same manner.

My problem lies herein: I have a hard time interpreting the results i have gained from my performed regressions. Also i have a very hard time linking any theory to the results, meaning i have a very hard time coming up with reasons upon what the results SHOULD show and compare that to what they ACTUALLY show

The regressions utilized is likewise: investment = Q + Cashflow + Tangibility + CashflowTangibility

Leverage = Q + Cashflow + Tangibility + CashflowTangibility

Payout = Q + Cashflow + Tangibility + Cashflow*Tangibility

I hope somebody is able to help. I look to draw similarities in my results to relevant corporate finance theories such as the pecking order theory.

These are my results of investment and leverage:

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