Gryglewicz, SebastianMancini, LorianoMorellec, ErwanSchroth, EnriqueValta, Philip2022-08-012022-08-012022-08-012022-07-1810.1093/rfs/hhab127https://infoscience.epfl.ch/handle/20.500.14299/189693WOS:000826640900010Theory has recently shown that corporate policies should depend on firms' exposure to short- and long-lived cash flow shocks and the correlation between these shocks. We provide granular estimates of these parameters for Compustat firms using a new filter that uses only cash flow data and the theoretical restrictions of a canonical cash flow model. As predicted by theory, we find that the estimated parameters are strongly related to corporate liquidity and financing choices, that firms with a higher estimated correlation between shocks implement riskier policies, and that the sign of this correlation determines the cash flow sensitivity of cash. Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online.Business, FinanceEconomicsBusiness & Economicsg31g32g35asset price dynamicscorporate-investmentcapital structuretime-seriesagencypermanentcostscompensationconsumptionmanagementtext::journal::journal article::research article