 Financialization, financial assets and productive investment in Latin America: evidence from large public listed companies 1995–2015Nicolas Hernán Zeolla and Juan Santarcángelo () Journal of Post Keynesian Economics, 2024, vol. 47, issue 2, 442-466 Abstract: Using firm-level data from public listed large non-financial corporations (NFC) this paper studies the impact of financialization on productive investment in Latin America in the last two decades. After considering the main stylized facts on investment, profits and financial incomes from balance sheet information, we estimate an econometric model of investment determinants to measure the impact of financialization over large NFC. Similar to developed economies, evidence suggest that dividends payments and financial income has negative affect investment. But, in Latin America, restricted only for large and very large firms. Besides this, we also registered that non-current financial assets holding negatively affects productive investment. This seems to be especially relevant in the context of the carry trade boom in the region after 2009. These findings provide new insights on the negative effects of the international dimension of financialization on emerging countries productive investment. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:47:y:2024:i:2:p:442-466 Ordering information: This journal article can be ordered from DOI: 10.1080/01603477.2023.2240761 Access Statistics for this article More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals |
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