In this paper we investigate to what extent firm investment in transition countries is sensitive to internal finance. We use accounts data of over 4000 companies in four countries at different stages of transition. We find that firms in Bulgaria and Romania are less sensitive to internal...

The corruption is a secondary phenomenon, because there are economic preconditions causing it. Unless the achievement of macroeconomic stability and the formation of the institutions appropriate to a market economy reach their logical ending, both of them may become the cause of corruption in...

Unlike previous empirical work concerning investment behavior and the determinants of liquidity constraints, we use a switching regression framework when sample separation is unknown and endogenous and firms are assumed to operate either in the financially constrained or in the financially...

This paper shows that, counter to common perception, stock prices in China are strongly linked to firm fundamentals. Since the reforms of the early 2000s, stock prices are as informative about future profits as they are in the US. Although the market is segmented from international equity...

In this paper, we examine net investment during the early stages of transition using micro data on the population of medium and large industrial firms in the Czech Republic during the 1992-95 period. We examine the relevance of alternative models of investment and test if investment behavior...

The trivial insight that capital accumulation is a socially necessary activity but under capitalist institutions left to the private profit motivated considerations of the financial capitalists leads to the proposal to introduce investment contributions and collective investment funds,...

A model is developed in which an industry of firms is privatised. The 'participation' method of privatisation is used, whereby firms are sold for cash, but the state retains a proportionate share of ownership. In each firm the new private owner has the opportunity to make a reorganisational...

This paper looks at the behavior of large industrial firms in Poland in 1988-1994. Using a longitudinal enterprise level data set, we are able to systematically test various hypotheses concerning firms' reactions to the change in their environments. The results confirm a structural break after...

The Chinese state owned enterprise (CSOE) presents an anomaly in the operation of the well-ordered construction of a self-referencing and closed system of liberal democratic internationalism, especially as that system touches on business responsibilities under national and international human...

In this paper we investigate to what extent firm investment in transition countries is sensitive to internal finance. We use accounts data of over 4000 companies in four countries at different stages of transition. We find that firms in Bulgaria and Romania are less sensitive to internal...