This study investigates the impact of corruption on investment decisions of Brazilian public firms. The findings show a strongly negative effect of corruption on investment-cash flow sensitivity, evidencing that, in this case, firms tend to cancel or postpone investments. These results are mainly found in the areas of enterprise management and family firms. When corruption is considered, state-owned companies of the electricity, gas, and water industries show the investment-cash flow sensitivity about seven times higher than that of non-state firms, indicating potential agency problems.