Investment, R&D and liquidity constraints
In this contribution, we present a novel instrument to control for investment opportunities in studying the investment-cash-flow sensitivity. More in particular we introduce the book value of R&D. We argue this instrument has advantages over other theories of investment, especially when focussing on the corporate governance aspects of the investment-cash-flow sensitivity. On the other hand, it implies the investment-cash-flow sensitivity can only be studied in high-tech environments. These have corporate governance problems of their own. To investigate their effect, a signalling model is extended for R&D induced investment opportunities, and estimated on a panel of Belgian data.
Year of publication: |
2002-05
|
---|---|
Authors: | Cayseele, Pr. D. Patrick Van |
Institutions: | Nationale Bank van België/Banque national de Belqique (BNB) |
Saved in:
freely available
Saved in favorites
Similar items by person
-
On the conjugacy of off-line and on-line Sequential Monte Carlo Samplers
Dufays, Arnaud, (2014)
-
(Not so) easy come, (still) easy go? Footloose multinationals revisited
Blanchard, Pierre, (2012)
-
Effectiveness and transmission of the ECB’s balance sheet policies
Boeckx, Jef, (2014)
- More ...