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Financing patterns and corporate investment relationship : a brief overview

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Detalhes bibliográficos
Resumo:Investment is an important economic variable and, therefore, it is important to have an understanding of the factors that determine its evolution over time. One aspect that has been highlighted in recent research is that corporate investment behavior is influenced by the financial structure of firms. In fact, if the hypothesis of imperfect capital markets holds, there is no perfect substitutability between the various sources of funds, which may affect the investment expenses of firms and lead to a situation of underinvestment. In this paper, a brief overview of different explanations for the relationship between financing patterns and investment behavior of firms is presented.
Autores principais:Cunha, Jorge
Outros Autores:Paisana, António
Assunto:Corporate investment Financing patterns Financing constraints Agency costs
Ano:2012
País:Portugal
Tipo de documento:comunicação em conferência
Tipo de acesso:acesso aberto
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho
Descrição
Resumo:Investment is an important economic variable and, therefore, it is important to have an understanding of the factors that determine its evolution over time. One aspect that has been highlighted in recent research is that corporate investment behavior is influenced by the financial structure of firms. In fact, if the hypothesis of imperfect capital markets holds, there is no perfect substitutability between the various sources of funds, which may affect the investment expenses of firms and lead to a situation of underinvestment. In this paper, a brief overview of different explanations for the relationship between financing patterns and investment behavior of firms is presented.