Logo
Munich Personal RePEc Archive

Does demand and price uncertainty affect Belgian and Spanish corporate investment?

Peeters, Marga (1997): Does demand and price uncertainty affect Belgian and Spanish corporate investment? Published in: Banco de España Documento de Trabajo No. 9707

[thumbnail of MPRA_paper_23604.pdf]
Preview
PDF
MPRA_paper_23604.pdf

Download (3MB) | Preview

Abstract

Several recent studies have shown that uncertainty affects investment decisions. Specifically, demand and/or price uncertainty are found to depress corporate investment in e.g. the United States. This paper investigates whether similar results hold for Belgium and Spain, countries where financial markets are less developped and many firms evidently face financial constraints. Uncertainty of demand, output prices and investment prices are measured by the standard deviation of (pre-)filtered Belgian (1984-1992) and Spanish (1983-1993) panel data, and included as explanatory variables in the investment equations derived from a neo-classical model. The results indicate that investment behaviour towards uncertainty differs significantly between low- and high-leveraged firms in both Belgium and Spain.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.