Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144246
Authors: 
Cincera, Michele
Year of Publication: 
2002
Series/Report no.: 
Working Paper Research 32
Abstract: 
This paper aims at assessing the relationship between the possible existence of financial constraints and the decisions of Belgian private firms as regards their investments in both capital and R&D investments over the last decade. The main system GMM estimates from the error-correction equations indicate that the sensitivity of both types of investments to cash flow variations are rather differentiated. On the whole, these effects are more important for investments in ordinary assets, young small-scale firms located in the Walloon region that are not part of a multinational. Firms that perform R&D on a permanent basis and that receive public funds to support these activities appear to be less cash constraints.
Subjects: 
financial constraints
investments in capital and R&D
Belgian private companies
error-correction investment equations
system GMM panel data econometric models
JEL: 
C23
E22
O31
Document Type: 
Working Paper

Files in This Item:
File
Size
767.51 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.