IDEAS home Printed from https://ideas.repec.org/a/taf/jbemgt/v13y2011i5p866-894.html
   My bibliography  Save this article

SMEs’ investment determinants: empirical evidence using quantile approach

Author

Listed:
  • Paulo Maçãs Nunes
  • Sílvia Mendes
  • Zélia Serrasqueiro

Abstract

This paper makes an important contribution to the literature on SMEs, namely investigating whether the relationships between determinants and investment are dependent on the level of investment. Based on a sample of Portuguese SMEs, using two-step estimation method, firstly using probit regression and secondly using quantile regressions, we find significant non-linearities in relationships formed between determinants and investment over the distribution of investment. In particular, we find that: 1) sales, age and growth opportunities are restrictive determinants of investment for low levels of investment, but positive determinants of investment for high levels of investment; 2) debt and the interest rate are restrictive determinants of investment but only for low and intermediate levels of investment; 3) cash flow is a positive determinant of investment, but is more important for investment regarding low levels of investment; 4) GNP is a positive determinant of investment, but only for high levels of investment; and 5) investment in the previous period is a positive determinant of investment in the present period, but only for intermediate and high levels of investment. The relevance of the various theories explaining firm investment depends on SMEs’ level of investment.

Suggested Citation

  • Paulo Maçãs Nunes & Sílvia Mendes & Zélia Serrasqueiro, 2011. "SMEs’ investment determinants: empirical evidence using quantile approach," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 13(5), pages 866-894, August.
  • Handle: RePEc:taf:jbemgt:v:13:y:2011:i:5:p:866-894
    DOI: 10.3846/16111699.2011.620172
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3846/16111699.2011.620172
    Download Restriction: Access to full text is restricted to subscribers.

    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:taf:jbemgt:v:13:y:2011:i:5:p:866-894. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/TBEM20 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.