Is size important for the investment-uncertainty relationship? : an empirical analyses for Dutch firms
AbstractAbstract By using data from a survey amongst a panel of Dutch firms we investigate whether the investment-uncertainty relationship depends on the size of the firm. We find that uncertainty has a positive effect on investment of small firms, whereas it is negative for large firms. There are probably two reasons for this outcome. First, both small and large Dutch firms do not seem to be financially constrained. Second, sunk costs are much higher for large than for small Dutch firms.
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Bibliographic InfoPaper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 00E03.
Date of creation: 2000
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-05-22 (All new papers)
- NEP-CFN-2000-05-22 (Corporate Finance)
- NEP-FIN-2000-05-22 (Finance)
- NEP-IND-2000-05-22 (Industrial Organization)
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