Financial frictions and the K/L ratio in UK manufacturing
AbstractWe investigate whether technological differences of UK manufacturing industries influence the response of firms' capital-labour (K/L) ratio to changes in financial indicators under financial frictions. The results reveal that technological factors along with internal funds significantly affect the K/L ratio for financially constrained firms.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 112 (2011)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/ecolet
Financial frictions Capital-labour ratio Manufacturing industries;
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