Economic studies which examine the financing patterns of firms, particularly in emerging markets seldom consider the market environment in which they operate. The most recent Asian financial crisis and its exposure of institutional failures in the context of financial sector liberalization show that these market conditions are vital. The positive relationship between a firm's excess cash flow and investment are well known but the environment which determines retention of cash as opposed to paying dividends remains unresolved. The results of this survey suggest a framework by which future research in data collection, theoretical analysis and empirical testing may be undertaken. Table of Contents Internal finance as a source of investment - managerial/principal agent or asymmetric information approach cash retention strategies - test of free cash flow theory the cost of capital - earnings retention versus leverage earnings retention as a specification mechanism in predicting corporate bankruptcy factors affecting the market for corporate control