THE INVESTMENT DETERMINANTS FOR UNITED KINGDOM COMPANIES

Mihaela Simionescu

Romanian Economic Business Review, 2016, vol. 11, issue 2, 223-231

Abstract: The objective of this research is to determine some factors that affect the investment in United Kingdom companies. For investment, the capital expenditure was used as proxy. For a sample of 2865companies from London during 2005-2013, the determinants of investment were obtained using some regression models. The following groups of explanatory variables were identified: 1) sales, book to market ratio, cash flow, leverage and cash to assest, 2) sales and book to market ratio, 3) sales, 4) leverage. The investment depended on sales and book to market ratio during the crisis (2008-2013). In this period, sales and market to book have a positive impact on investment changes while during 2005-2013 onlybook to market had a positive impact on investment.

Keywords: investment; capital expenditure; book to market ratio; sales (search for similar items in EconPapers)
Date: 2016
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