The study looks at how firms make investment decisions when facing financial constraints. By analyzing data, the researchers found that poor firms tend to invest more when they have better internal financial resources. Wealthy firms, on the other hand, invest as much as they want without being constrained by finances. Small firms are more affected by financial shocks than large firms. Overall, the study shows that liquidity constraints significantly impact firms' investment choices, with fresh equity financing leading to a 35% increase in capital stock over 20 years.