 Determinants of Firm Investment: Evidence from Slovenian Firm-Level DataČrt Lenarčič and Georgios Papadopoulos South-Eastern Europe Journal of Economics, 2020, vol. 18, issue 2, 159-180 Abstract: This paper examines the role of corporate balance sheet positions in determining Slovenian firms' investment behaviour. The analysis is based on the theoretical framework of the financial accelerator, which suggests that firms' financial positions influence their real behaviour. The underlying hypotheses of the financial accelerator are tested, namely its asymmetric effec tduring crises and in respect to firms'size. In addition, the existence of differences in the relationship between the balance sheet variables and investment across various sectors is examined. The results indicate that balance sheet strength is an important determinant of Slovenian firms' investment behaviour. Moreover, this relationship is affected by a firm's size but the effect of the crisis or its sectoral specialization does not seem to materially affect it. Keywords: Firm Investment; Financial Accelerator; Firm-Level Data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:seb:journl:v:18:y:2020:i:2:p:159-180 Access Statistics for this article More articles in South-Eastern Europe Journal of Economics from Association of Economic Universities of South and Eastern Europe and the Black Sea Region Contact information at EDIRC. |
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