IDEAS home Printed from https://ideas.repec.org/a/mes/postke/v47y2024i2p442-466.html
   My bibliography  Save this article

Financialization, financial assets and productive investment in Latin America: evidence from large public listed companies 1995–2015

Author

Listed:
  • Nicolas Hernán Zeolla
  • Juan E. Santarcángelo

Abstract

Using firm-level data from public listed large non-financial corporations (NFC) this paper studies the impact of financialization on productive investment in Latin America in the last two decades. After considering the main stylized facts on investment, profits and financial incomes from balance sheet information, we estimate an econometric model of investment determinants to measure the impact of financialization over large NFC. Similar to developed economies, evidence suggest that dividends payments and financial income has negative affect investment. But, in Latin America, restricted only for large and very large firms. Besides this, we also registered that non-current financial assets holding negatively affects productive investment. This seems to be especially relevant in the context of the carry trade boom in the region after 2009. These findings provide new insights on the negative effects of the international dimension of financialization on emerging countries productive investment.

Suggested Citation

  • Nicolas Hernán Zeolla & Juan E. Santarcángelo, 2024. "Financialization, financial assets and productive investment in Latin America: evidence from large public listed companies 1995–2015," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 47(2), pages 442-466, April.
    • Handle: RePEc:mes:postke:v:47:y:2024:i:2:p:442-466
    DOI: 10.1080/01603477.2023.2240761
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01603477.2023.2240761
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01603477.2023.2240761?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:47:y:2024:i:2:p:442-466. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MPKE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.