The paper defines the relationship between cash flows and investments of companies. The author has built an algorithm, which determines a company's investment activity dependence on financial constraints' determinants. The author has also tested the methodology on the data of companies operating in developed and emerging markets. The article presents a comparative analysis of the factors, which provides the understanding of the level of the constraint phenomenon dependence on the type of market and helps develop the ways to improve the investment policy of companies operating in developing economies.
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