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Investment, Q and Liquidity / Investitionen, Q und Liquidität: Evidence for Germany Using Firm Level Balance Sheet Data / Empirische Ergebnisse auf Basis von Unternehmensdaten

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  • Behr Andreas

    (Westfälische Wilhelms-Universität Münster, Institut für Ökonometrie und Wirtschaftsstatistik, Am Stadtgraben 9, D-48143 Münster. Tel.: ++49/+251/8322954, Germany)

Abstract

We analyse the investment behaviour of German firms within the framework of the Q-theory. Because we use anonymous individual firm balance sheet data, no stock market measure of Q is available. The data set contains 1,342 manufacturing firms covering the period 1987 to 1998. Using the approach of Abel&Blanchard and Gilchrist&Himmelberg, a measure of Q is derived through a vector-autoregressive-model to forecast future profits directly.

Suggested Citation

  • Behr Andreas, 2005. "Investment, Q and Liquidity / Investitionen, Q und Liquidität: Evidence for Germany Using Firm Level Balance Sheet Data / Empirische Ergebnisse auf Basis von Unternehmensdaten," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(1), pages 2-21, February.
    • Handle: RePEc:jns:jbstat:v:225:y:2005:i:1:p:2-21
    DOI: 10.1515/jbnst-2005-0102
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    References listed on IDEAS

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