Multiple Market Imperfections, Firm Profitability and Investment

Giorgio Calcagnini, Annalisa Ferrando and Germana Giombini

No 1305, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

Abstract: This paper investigates the impact of the interaction between product, labor and financial market imperfections on firms? investment by using a panel data of European firms over the period 1994-2008. It studies the impact of product and labor market regulations on firm investment and how it changes with the degree of financial market imperfections. Findings show that product and labor market regulations negatively affect firm investment by lowering firm profitability. The presence of more efficient financial markets increases firm investment and lowers the negative effects of market regulations.

Keywords: Investment; Regulation Impact; EPL; Financial Market Development. (search for similar items in EconPapers)
JEL-codes: D21 D43 E22 E60 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013, Revised 2013
New Economics Papers: this item is included in nep-bec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_13_05.pdf First version, 2013 (application/pdf)

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Journal Article: Multiple market imperfections, firm profitability and investment (2015)
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