Does firm size matter? Evidence on the impact of liquidity constraints on firm investment behavior in Germany
AbstractThis 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 1980?s, have been improving access to capital for some groups of firms. -- Dieser Beitrag untersucht die Beziehung zwischen LiquiditÃ¤tsbeschrÃ¤nkungen und Investitionsverhalten deutscher Unternehmen unterschiedlicher GrÃ¶Ãen im Zeitraum 1970 bis 1986. Die Ergebnisse deuten darauf hin, dass das Investitionsverhalten mittlerer Unternehmen stÃ¤rker von der LiquiditÃ¤tsseite her beschrÃ¤nkt ist als das der in der Untersuchung berÃ¼cksichtigten kleinen und groÃen Unternehmen. Dies spricht dafÃ¼r, dass die besondere deutsche Infrastruktur, die auf eine UnterstÃ¼tzung kleiner Unternehmen ausgerichtet ist, derartige LiquiditÃ¤tsbeschrÃ¤nkungen mit Erfolg in gewissem MaÃe gelockert hat. Die Ergebnisse unterstÃ¼tzen auch die Hypothese, dass der stÃ¤rkere Wettbewerb und die Internationalisierung, die die deutschen FinanzmÃ¤rkte in den achtziger Jahren kennzeichneten, einigen Gruppen von Unternehmen den Zugang zu Kapital verbesserten.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Industrial Organization.
Volume (Year): 20 (2002)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/505551
Other versions of this item:
- Audretsch, David B. & Elston, Julie Ann, 2000. "Does firm size matter? Evidence on the impact of liquidity constraint on firm investment behavior in Germany," HWWA Discussion Papers 113, Hamburg Institute of International Economics (HWWA).
- Audretsch, David B & Elston, Julie Ann, 1994. "Does Firm Size Matter? Evidence on the Impacts of Liquidity Constraints on Firm Investment Behaviour in Germany," CEPR Discussion Papers 1072, C.E.P.R. Discussion Papers.
- G0 - Financial Economics - - General
- G1 - Financial Economics - - General Financial Markets
- G2 - Financial Economics - - Financial Institutions and Services
- G3 - Financial Economics - - Corporate Finance and Governance
- L0 - Industrial Organization - - General
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