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Internal Financial Markets and Corporate Investment Strategies in Africa — A Case Study of Mauritius

Listed author(s):
  • Prayagsing Chakeel Coomar
  • Jankee Kheswar
Registered author(s):

    This Paper confirms that, in a pre-financial crisis environment, alternative forms of corporate arrangements and operation of internal financial markets impact differently on corporate investment decisions, tested in heterogeneous samples in Mauritius. Innovatively, a more rational measure of internal finance (net liquidity), in line with International Accounting Standards, is adopted. It is found that only certain categories of firms rely more on internal finance than others and also do not resort to debts. Based on the results available, several policies are proposed for the authorities and financial institutions in view of addressing the problem of financial constraints (FC) and enhancing corporate investments.

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    File URL: http://www.rfb.ase.ro/articole/ARTICOL_I_8.pdf
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    Article provided by Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante in its journal The Review of Finance and Banking.

    Volume (Year): 08 (2016)
    Issue (Month): 1 (June)
    Pages: 007-020

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    Handle: RePEc:rfb:journl:v:08:y:2016:i:1:p:007-020
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