Does Firms' Financial Status Affect Plant-Level Investment and Exit Decisions?

Joachim Winter ()

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: This paper investigates the influence of a firm's financial status on the within-firm allocation of funds, reflected in its plant-level investment and exit decisions. In the empirical analysis, financial status is measured by both standard measures and an indicator variable recently suggested by Kaplan and Zingales. Based on these firm-level financial variables and on planet-level investment and production data from the U.S. Census Bureau's Longitudinal Research Database(LRD), econometric models of plant operating regimes are estimated which summarize investment and exit decisions. The empirical evidence supports the view that firm-level financial status affects investments and market exit decisions observed at the plant level.

Keywords: CES; economic; research; micro; data; microdata; chief; economist (search for similar items in EconPapers)
Date: 1999-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www2.census.gov/ces/wp/1999/CES-WP-99-03.pdf (application/pdf)

Related works:
Working Paper: Does firms' financial status affect plant-level investment and exit decisions? (1998)
Working Paper: Does Firms` Financial Status Affect Plant-Level Investment and Exit Decision (1998)
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:cen:wpaper:99-3

Access Statistics for this paper

More papers in Working Papers from U.S. Census Bureau, Center for Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dawn Anderson ().