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Empirical evidence suggests that capital structure varies across firms facing different levels of information asymmetry, however, this evidence contradict the prediction of pecking order hypothesis. Although debt capacity constraints offer some explanation for this discrepancy, it fails to...
Persistent link: https://www.econbiz.de/10011771645
rate of profit and its components - profit share, capacity utilization rate, and capacity-capital ratio - on investment …. Our results show that: (a) the rate of profit has both short and long run positive impacts on investment; (b) the profit … contemporaneous positive impact on investment. …
Persistent link: https://www.econbiz.de/10011522167
analysis further identifies sources of financing in these subsectors and discusses future investment and financing challenges …
Persistent link: https://www.econbiz.de/10012180399
Persistent link: https://www.econbiz.de/10008648890
This paper uses a neoclassical investment model extended with installation costs for capital, agency costs for … investment financing, and the possibility of the firm being output constrained as a framework for an empirical analysis of … investment behaviour in the Swedish manufacturing industry. The theory is implemented within a multivariate error …
Persistent link: https://www.econbiz.de/10011583518
shortages of capital, and, finally, (vi) the estimated adjustment function implies that aggregate investment is relatively …
Persistent link: https://www.econbiz.de/10011583829
adjustment function implies that aggregate investment is relatively unresponsive to aggregate shocks in deep recessions as …
Persistent link: https://www.econbiz.de/10011585817
If the relation between investment and economic growth is well established in the macroeconomic literature, the … linking investment and firm performance in the French and Italian manufacturing industries. It does so by putting forth a … novel methodology to identify investment spikes that corrects for size dependence. While maintaining the desired properties …
Persistent link: https://www.econbiz.de/10011731026
If the relation between investment and economic growth is well established in the macroeconomic literature, the … linking investment and firm performance in the French and Italian manufacturing industries. It does so by putting forth a … novel methodology to identify investment spikes that corrects for size dependence. While maintaining the desired properties …
Persistent link: https://www.econbiz.de/10009709518
We examined investment behavior in the Japanese manufacturing industry using investment revision data to analyze … investment behavior from a fresh angle. We tested the martingale investment hypothesis and then the q-theory of investment by … looking at the response of stock return and investment to news arriving at firms. The martingale hypothesis was generally …
Persistent link: https://www.econbiz.de/10003407387