Corporate fixed investment and internal liquidity: Evidence from Greek listed companies
Open Access
- 10 September 2020
- journal article
- Published by Virtus Interpress in Corporate Governance and Sustainability Review
- Vol. 4 (2), 68-76
- https://doi.org/10.22495/cgsrv4i2p7
Abstract
Utilizing a unique panel dataset of 273 listed firms in the Athens Stock Exchange (ASE) we explore the issue of capital market imperfections with respect to access to investment financing. In particular, we investigate the extent to which investment is sensitive to the availability of internal finance. By employing a fixed-effect model, our empirical results indicate a positive association of cash flow and investment, leading to the conclusion of imperfect substitutability between internal and external finance and thus the importance of the former for investment decisions. According to our knowledge, this is the first study covering the specific tremble period of ASE for Greek manufacturing firms.Keywords
This publication has 50 references indexed in Scilit:
- Institutional investment horizon and investment–cash flow sensitivityJournal of Banking & Finance, 2011
- Financing Constraints and the Cost of Capital: Evidence from the Funding of Corporate Pension PlansThe Review of Financial Studies, 2011
- NO DEEP POCKETS: SOME STYLIZED EMPIRICAL RESULTS ON FIRMS’ FINANCIAL CONSTRAINTSJournal of Economic Surveys, 2010
- Cash flow, investment, and investment opportunities: New tests using UK panel dataJournal of Banking & Finance, 2008
- Italian Corporate Governance, Investment, and FinanceEmpirica, 2000
- The economics of small business finance: The roles of private equity and debt markets in the financial growth cycleJournal of Banking & Finance, 1998
- Internal funds and corporate investment in IndiaJournal of Development Economics, 1994
- Dynamic Investment Models and the Firm's Financial PolicyThe Review of Economic Studies, 1994
- Financial Fragility and Economic PerformanceThe Quarterly Journal of Economics, 1990
- The Present Value of Profits and Cyclical Movements in InvestmentEconometrica, 1986