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An Empirical Analysis of West German Corporate Investment Decisions Using Company-Level Panel Data

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  2. Economics, Finance, Business & Management
  3. Journal of Contextual Economics – Schmollers Jahrbuch
  4. Vol. 113, Issue 4
  5. pp. 579–595

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Frisse, K., Funke, M., Lankes, F. An Empirical Analysis of West German Corporate Investment Decisions Using Company-Level Panel Data. Journal of Contextual Economics – Schmollers Jahrbuch, 113(4), 579-595. https://doi.org/10.3790/schm.113.4.579
Frisse, Kenneth; Funke, Michael and Lankes, Fidelis "An Empirical Analysis of West German Corporate Investment Decisions Using Company-Level Panel Data" Journal of Contextual Economics – Schmollers Jahrbuch 113.4, 1993, 579-595. https://doi.org/10.3790/schm.113.4.579
Frisse, Kenneth/Funke, Michael/Lankes, Fidelis (1993): An Empirical Analysis of West German Corporate Investment Decisions Using Company-Level Panel Data, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 113, iss. 4, 579-595, [online] https://doi.org/10.3790/schm.113.4.579
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An Empirical Analysis of West German Corporate Investment Decisions Using Company-Level Panel Data

Frisse, Kenneth | Funke, Michael | Lankes, Fidelis

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 113 (1993), Iss. 4 : pp. 579–595

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/schm.113.4.579
Language
Multiple languages
Pages
17

Frisse, Kenneth

Funke, Michael

Lankes, Fidelis

References

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Abstract

The paper combines the adjustment costs hypothesis of Tobin’s g models with the possibility of financial constraints. The risk of financial distress leads external claimants and firms to look at indicators of solvency in deciding about investment. The basis of our empirical investigation is a panel data set of quoted West German industrial and commercial companies. The application of the model shows that firms tend to react both to changes in the valuation ratio and to variations in financial factors. The estimates therefore suggest that financial factors are a significant determinant of investment

Table of Contents

Section Title Page Action Price
Kenneth Frisse/Michael Funke/Fidelis Lankes: An Empirical Analysis of West German\rCorporate Investment Decisions Using\rCompany-Level Panel Data 579
I. Introduction 579
II. Optimal capital accumulation for the constrained firm 580
III. Empirical results 584
(a) Data 584
(b) Empirical methodology 586
(c) Regression results 588
IV. Conclusions 592
Appendix: Data Sources and Definitions 592
Abstract 593
Zusammenfassung 593
References 593

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