Asymmetric Effects of Firm Investment Determinants: Evidence from Post-Transformation Economies

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

Asymmetric Effects of Firm Investment Determinants: Evidence from Post-Transformation Economies

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Asymmetric Effects of Firm Investment Determinants: Evidence from Post-Transformation Economies

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

<a href="/cs/project/GA19-22488S" target="_blank" >GA19-22488S: Interakce finančního sektoru a reálné ekonomiky</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Finance a úvěr-Czech Journal of Economics and Finance

ISSN

0015-1920

e-ISSN

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Svazek periodika

70

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

12

Strana od-do

373-384

Kód UT WoS článku

000584451700005

EID výsledku v databázi Scopus

2-s2.0-85095442342