Financial Factors and Investment in Belgium, France, Germany and the Uk:A Comparison Using Company Panel Data

28 Pages Posted: 29 Aug 2000 Last revised: 5 Oct 2010

See all articles by Stephen R. Bond

Stephen R. Bond

Nuffield College; Institute for Fiscal Studies (IFS)

Julie Ann Elston

Oregon State University - Cascades Campus; Oregon State University

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT); National Bureau of Economic Research (NBER)

Benoit Mulkay

Université de Montpellier 1

Date Written: January 1997

Abstract

We construct company panel datasets for manufacturing firms in Belgium, France, Germany and the UK, covering the period 1978-89. These datasets are used to estimate a range of empirical investment equations, and to investigate the role played by financial factors in each country. A robust finding is that cash flow or profits terms appear to be both statistically and quantitatively more significant in the UK than in the three continental European countries. This is consistent with the suggestion that financial constraints on investment may be relatively severe in the more market-oriented UK financial system.

Suggested Citation

Bond, Stephen R. and Elston, Julie Ann and Mairesse, Jacques and Mulkay, Benoit, Financial Factors and Investment in Belgium, France, Germany and the Uk:A Comparison Using Company Panel Data (January 1997). NBER Working Paper No. w5900. Available at SSRN: https://ssrn.com/abstract=225682

Stephen R. Bond

Nuffield College ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom
+44 1865 278 674 (Phone)
+44 1865 278 621 (Fax)

Institute for Fiscal Studies (IFS)

7 Ridgmount Street
London, WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

Julie Ann Elston (Contact Author)

Oregon State University - Cascades Campus ( email )

2600 NW College Way
Bend, OR 97701
United States

Oregon State University ( email )

228 Cascades Hall
2600 College Way
Bend, OR 97701
United States

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT)

Keizer Karelplein 19
6211 TC Maastricht
Netherlands

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Benoit Mulkay

Université de Montpellier 1 ( email )

Avenue de la Mer Site Richter
163 Rue Auguste Broussonnet
Montpellier, Cedex 2 34090
France
+33-467158496 (Phone)
+33-467158486 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
60
Abstract Views
1,982
rank
374,246
PlumX Metrics