We examine the link between corporate financing and investment decisions of European firms by using a novel firm … financing sources and tangible and intangible investment types for a representative sample of EU28 firms in 2016. We provide new … estimate the finance-investment link, we find that SMEs and large enterprises show a different financing behaviour for their …

financing sources that firms use to fund their investment activities. The aforementioned survey also reveals a firms’ degree of … innovativeness. By applying a cluster analysis to group firms using information on their financing decisions, we investigate the link … between finance and innovation of EU firms. We identify seven financing clusters to show that the degree of innovativeness …