Does Firms` Financial Status Affect Plant-Level Investment and Exit Decision

Joachim Winter (winter@lmu.de)

No 98-48, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim

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 plant-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 investment and market exit decisions observed at the plant level.

Pages: 31 pages
Date: 1998-11-01
New Economics Papers: this item is included in nep-cfn, nep-fin and nep-ind
Note: Financial Support from Deutsche Forschungsgemeinschaft, SFB 504 at the University of Mannheim, is gratefully acknowledged.
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sfb504.uni-mannheim.de/publications/dp98-48.pdf (application/pdf)

Related works:
Working Paper: Does Firms' Financial Status Affect Plant-Level Investment and Exit Decisions? (1999)
Working Paper: Does firms' financial status affect plant-level investment and exit decisions? (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:xrs:sfbmaa:98-48

Ordering information: This working paper can be ordered from
office@sfb504.uni-mannheim.de

Access Statistics for this paper

More papers in Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim Contact information at EDIRC., Sonderforschungsbereich 504, University of Mannheim
Bibliographic data for series maintained by Carsten Schmidt (none@repec.org this e-mail address is bad, please contact repec@repec.org).