Title

Financial factors and investment in Belgium, France, Germany, and the United Kingdom: A comparison using company panel data

Authors

Authors

S. Bond; J. A. Elston; J. Mairesse;B. Mulkay

Comments

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Abbreviated Journal Title

Rev. Econ. Stat.

Keywords

CASH FLOW SENSITIVITIES; CONSTRAINTS; MODELS; LIQUIDITY; Economics; Social Sciences, Mathematical Methods

Abstract

We construct company panel data sets for manufacturing firms in Belgium, France, Germany, and the United Kingdom, covering the period 1978-1989. These data sets are used to estimate empirical investment equations, and to investigate the role played by financial factors in each country. A robust finding is that cash flow and profits terms appear to be both statistically and quantitatively more significant in the United Kingdom than in the three continental European countries. This is consistent with the suggestion that financial constraints on investment may be relatively severe in the more market-oriented U.K. financial system.

Journal Title

Review of Economics and Statistics

Volume

85

Issue/Number

1

Publication Date

1-1-2003

Document Type

Article

Language

English

First Page

153

Last Page

165

WOS Identifier

WOS:000180718900012

ISSN

0034-6535

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