 Firm Size and Saving Behaviour: A Study of Selected Indian Engineering FirmsB. C. Purohit
Indian Economic Review, 1988, vol. 23, issue 1, 107-120 Abstract: Empirical evidence regarding the firm size and corporate saving behaviour remains vague. However, the generally held notion is that small firms tend to save more. This study tries to test the validity of this hypothesis using micro firm level data drawn from balance sheets of 81 Indian engineering firms, over a period of 15 years. Our results point to the existence of interfirm variations in saving behaviour of firms having the same industrial belonging. Evidence based on average as well as marginal saving propensities indicates the medium and large companies to be the prime savers. This conclusion seems to be weakly valid within a further classification of group of medium and large companies only. These findings are corroborated by the long run marginal saving propensities and adjustment mechanisms-applying Linter formulation to data set of each individual sample firm. Our results are indicative of the role of existing capital market imperfections in shaping the corporate saving behaviour. Date: 1988 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:23:y:1988:i:1:p:107-120 Ordering information: This journal article can be ordered from Access Statistics for this article Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC. |
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