Asymmetric Effects of Firm Investment Determinants: Evidence from Post-Transformation Economies
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F20%3A43918596" target="_blank" >RIV/62156489:43110/20:43918596 - isvavai.cz</a>
Result on the web
<a href="https://journal.fsv.cuni.cz/storage/1469_attachment.pdf" target="_blank" >https://journal.fsv.cuni.cz/storage/1469_attachment.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Asymmetric Effects of Firm Investment Determinants: Evidence from Post-Transformation Economies
Original language description
The paper investigates asymmetric effects of liquidity and profitability on the investment behavior of publicly traded firms in post-transformation economies. We show that firms in post-transformation economies face more restrictive access to external sources of funds stemming from underdeveloped capital markets. We confirm that management of firms uses free cash flow to increase firm investment activities. On the contrary, liquidity decreases do not affect investment decision making processes of firms. We also confirm positive effects of increasing profitability and negative effects of decreasing profitability on the firm investment behavior. However, our results are robust only for the firms with financial leverage reported between 1 % and 50 %. Investment behavior of over indebted firms and low indebted firms is affected mostly by aggregate economic activity.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
<a href="/en/project/GA19-22488S" target="_blank" >GA19-22488S: Interactions between the financial sector and the real economy</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Finance a úvěr-Czech Journal of Economics and Finance
ISSN
0015-1920
e-ISSN
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Volume of the periodical
70
Issue of the periodical within the volume
4
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
12
Pages from-to
373-384
UT code for WoS article
000584451700005
EID of the result in the Scopus database
2-s2.0-85095442342