The paper explores the investment behaviour of German firms in the context of the Q-approach, which plays a dominant … role in empirical investment research. The analysis is based on the Deutsche Bundesbank's corporate balance sheet … the majority in Germany. One of the key variables when using balance sheet data, which has attracted much detailed …

Using a newly constructed panel dataset of German enterprises, I estimate R&D and capital investment equations for the … time period from 1990 to 1994. Simple accelerator specifications indicate considerable sensitivity of R&D and investment to … account, but a significant positive relationship between cash flow and investment remains for relatively small firms. In the …