Title

Does firm size matter? Evidence on the impact of liquidity constraints on firm investment behavior in Germany

Authors

Authors

D. B. Audretsch;J. A. Elston

Comments

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Abbreviated Journal Title

Int. J. Ind. Organ.

Keywords

Germany; liquidity constraints; size effects; IMPERFECT INFORMATION; Economics

Abstract

This paper examines the link between liquidity constraints and investment behavior for German firms of different sizes from 1970 to 1986. Results indicate that medium sized firms appear to be more liquidity constrained in their investment behavior than either the smallest or largest firms in the study, suggesting that the unique German infrastructure designed to assist the small firm has indeed succeeded in alleviating, to some degree,, such liquidity constraints. Findings also support the hypothesis that the emerging competition and internationalism which characterized the German financial markets in the 1980s, have been improving access to capital for some groups of firms. (C) 2002 Elsevier Science B.V. All rights reserved.

Journal Title

International Journal of Industrial Organization

Volume

20

Issue/Number

1

Publication Date

1-1-2002

Document Type

Article

Language

English

First Page

1

Last Page

17

WOS Identifier

WOS:000172111400001

ISSN

0167-7187

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