Financing Constraint and Firm Investment Following a Financial Crisis in Indonesia

Agustinus Prasetyantoko ()
Additional contact information
Agustinus Prasetyantoko: GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper deals with the sensitivity relation between firm-level investment and its internal liquidity by splitting samples into two different groups of firms, which are tradable (T) and non-tradable (N) sector. The study includes 226 listed companies in Jakarta Stock Exchange (JSX) by at least five consecutive years in the period of 1994 – 2004. This paper finds that during boom period, N-sector is less financially constrained, but in burst period, N-sector has greater financial constraints. It leads us to the explanation that during boom period N-sector grows faster than T-sector, but when crisis hits T-sector recovers more easily. By employing panel data analysis, our findings support an argument that asymmetric financing opportunities among N and T-sector are common in developing countries. Accordingly, this paper provides important explanations on firm-level investment behavior around financial crisis, which could be pivotal considerations in monetary and other relevant policies

Keywords: asymmetric financing opportunities; financing constraint; firm investment; financial crisis (search for similar items in EconPapers)
Date: 2006-06
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00133964
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in 23rd International Symposium on Banking and Monetary Economics, Jun 2006, Lille, France

Downloads: (external link)
https://shs.hal.science/halshs-00133964/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00133964

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().