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The aim of the paper was to identify the internal financing role in case of investment expenditures coverage role. The research sample is constituted from the food industry listed Polish, Latvian and Lithuanian companies. The investigated sample has 348 observations. The research horizon covers the period 2004 to 2016. Food industry due to the high operational risk connected with product price volatility often maintain the conservative strategy of financing. The role of internal capital was varied across studied countries sample. The highest importance in case of financing the investment by internal capital was recorded in Lithuania where the half of those funds were intended for investment in fixed assets issue. In case of economic downturn, the higher share of internal financing was left for the liquidity hedge and the lower investment expenditures were carried. The carried study confirmed the strong manager's preference in term of internal financing sources in case of growth strategy. [ABSTRACT FROM AUTHOR]