Capital Market Imperfections, Uncertainty and Corporate Investment in the Czech Republic

Economics of Planning - Tập 33 - Trang 53-70 - 2000
Robert Lensink1, Elmer Sterken1
1Faculty of Economics, University of Groningen, Groningen, The Netherlands

Tóm tắt

In this study we examine private investment behavior of firms in the Czech Republic. A special feature of the study is that the investment equations include variables which may give some more insights into the role of capital market imperfections as well as the effect of uncertainty. Our results find support for the accelerator model. We find evidence for cash-flow effects on Czech corporate investment. It is striking that indeed smaller longer privatized firms face relatively less cash flow restrictions. Financial structure doesn't matter as much as we expected. We find that smaller firms react positively to more uncertainty.

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Economics of Planning

Tập 33

53-70

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