Capital Market Imperfections, Uncertainty and Corporate Investment in the Czech Republic
AbstractIn 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. Copyright 2000 by Kluwer Academic Publishers
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Bibliographic InfoArticle provided by Springer in its journal Economics of Planning.
Volume (Year): 33 (2000)
Issue (Month): 1-2 ()
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Web page: http://www.springerlink.com/link.asp?id=113294
Other versions of this item:
- Lensink, R. & Sterken, Elmer, 1999. "Capital market imperfections, uncertainty and corporate investment in the Czech Republic," Research Report 99E51, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
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