We investigate the impact of managerial optimism on investment decision sensitivity to cash flow. Optimists tend to overestimate returns and make overly optimistic cash flow forecasts, which leads to increased investment levels, as well as increased sensitivity of investment decision to cash flow. We use several measures of optimism and a panel of UK listed firms to confirm two hypotheses, namely that optimism increases the sensitivity of investment to cash flow, and that this sensitivity is only found in cash constrained firms. Our results are generally consistent with previous studies conducted on US firms.

中文翻译：

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英国的管理乐观和投资决策

我们调查了管理乐观对投资决策对现金流的敏感性的影响。乐观者倾向于高估回报，对现金流做出过于乐观的预测，从而导致投资水平提高，以及投资决策对现金流的敏感性增加。我们使用几种乐观的衡量标准和一组英国上市公司来证实两个假设，即乐观会增加投资对现金流的敏感度，而这种敏感度只存在于现金受限的公司中。我们的结果与之前对美国公司进行的研究基本一致。