Firm Financial Status and Investment Behaviour: Evidence from Manufacturing Firms in Nigeria

Alarudeen Aminu Isiaka Akande Raifu
Additional contact information
Alarudeen Aminu Isiaka Akande Raifu: Department of Economics, Faculty of Economics, University of Ibadan, Ibadan, Nigeria. Department of Economics, Faculty of Economics, University of Ibadan, Ibadan, Nigeria.

Zagreb International Review of Economics and Business, 2019, vol. 22, issue 1, 73-92

Abstract: The study examines firm’s investment behaviour sensitivity to cash flow before, during and after the recent global financial crisis using the data of 28 firms listed on the Nigerian Stock Market during the period from 2001 to 2012. The contribution of the study to the existing literature rests on using financial crisis as basis for classifying firms as either financially constrained or unconstrained. Employing the panel data and instrumental variable estimation techniques, the study finds that firms’ investment behaviour sensitivity to cash flow was higher during the financial crisis than before or after the financial crisis. In other words, Nigerian firms were highly financially constrained during the last financial crisis. JEL Classification: C33, C36, G31

Keywords: firms’ investment; cash flow; Tobin’s q; panel data analysis; instrumental variables (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=321921 (text/html)
Abstract only available on-line

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:zag:zirebs:v:22:y:2019:i:1:p:73-92

Ordering information: This journal article can be ordered from
Zagreb International Review of Economics and Business, Faculty of Economics and Business, Trg J. F. Kennedy 6, 10000 Zagreb, Croatia.
http://www.efzg.hr/default.aspx?id=6045

DOI: 10.2478/zireb-2019-0013

Access Statistics for this article

Zagreb International Review of Economics and Business is currently edited by Soumitra Sharma

More articles in Zagreb International Review of Economics and Business from Faculty of Economics and Business, University of Zagreb Contact information at EDIRC.
Bibliographic data for series maintained by Jurica Šimurina ( this e-mail address is bad, please contact ).