Drivers of Corporate Investment in India: Assessing the Impact of Monetary Policy and COVID

Kashyap Gupta, Sunil Kumar and Sarthak Gulati

South Asia Economic Journal, 2023, vol. 24, issue 2, 216-251

Abstract: Empirical investigation finds that firm-specific factors, namely deleveraging of balance sheets, comfortable cash flows and improving debt servicing capacity impact fixed investment in private corporate sector positively. Monetary policy impacts fixed assets investment growth of financially constrained firms more compared to non-financially constrained firms. Furthermore, the impact of COVID pandemic on investment was more adverse in case of weak firms. JEL Codes: G3, E22, O16, E52

Keywords: Economic policy; financial investment/analysis; firm performance; India; macroeconomics (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:soueco:v:24:y:2023:i:2:p:216-251

DOI: 10.1177/13915614231192775

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