Liquidity Constraints and Investment Opportunities: New Evidence from Large and Small Businesses in the UK

Andros Gregoriou

International Journal of the Economics of Business, 2013, vol. 20, issue 2, 269-279

Abstract: In this paper, we compare the liquidity constraints and investment opportunities for large and small businesses. This is done by examining the relationship between stock liquidity and investment opportunities in a sample of large and small enterprises listed on the London Stock Exchange. We find a positive statistical association between stock liquidity and investment opportunities, regardless of the size of the enterprise. This unique result in the London Stock Exchange suggests that firm size does not influence corporate investment decisions because there is no significant change in the cost of capital between large and small enterprises .

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13571516.2013.782985 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:ijecbs:v:20:y:2013:i:2:p:269-279

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIJB20

DOI: 10.1080/13571516.2013.782985

Access Statistics for this article

International Journal of the Economics of Business is currently edited by Eleanor Morgan

More articles in International Journal of the Economics of Business from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().