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We introduce professional financial advice in households' choice to hold risky financial assets. Consistent with the predictions from a formal model, we present evidence that households' trust in financial advice only matters when their perceived own financial capability is low. Instead, for...
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This paper investigates the link between corporate debt and investment for a group of five peripheral euro area … countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive … thresholds beyond which leverage has a negative and significant impact on investment. The investment sensitivity of debt …
Persistent link: https://www.econbiz.de/10011719911
We present evidence that referenda have a significant, detrimental outcome on investment. Employing an unsupervised … policy-related uncertainty. Examining the relationship of these indices with investment on a longitudinal panel of 3 … uncertainty to investment. Our preferred specification suggests that a one standarddeviation increase in Brexit uncertainty …
Persistent link: https://www.econbiz.de/10012212854
firm level investment and high-frequency identified monetary policy shocks. We show that the reaction of firms' investment …
Persistent link: https://www.econbiz.de/10012197861
We assess the impact of credit constraints on investment, inventories and other working capital and firm growth with a …, as firms with poor investment and growth opportunities may have a higher probability of being credit constrained. We … implement several strategies to overcome this obstacle: proxies for investment opportunities, lagged regressors, random effects …
Persistent link: https://www.econbiz.de/10011792068
We investigate the impact of expectations about future climate policy on investment decisions of fossil fuel firms. Our … empirical analysis reveals that firms with greater exposure to climate change significantly increased their investment in … response to the Paris Agreement, in contrast to firms with lower exposure. Importantly, investment was directed towards …
Persistent link: https://www.econbiz.de/10014558848
This paper analyses the implications of corporate indebtedness for investment following large economic shocks. The … suggest that investment of high-debt firms is significantly depressed for an extended period in the aftermath of economic …% higher than that of firms with lower debt burdens. The negative impact of high debt on investment is most evident for firms …
Persistent link: https://www.econbiz.de/10013448723
, though cannot equally well capture differences in the investment ratios. The conclusion that we draw is that consumption …
Persistent link: https://www.econbiz.de/10003778788