Sectoral Fluctuations in U.K. Firms’ Investment Expenditures
نویسندگان
چکیده
In this paper, employing VAR and factor analytic models with quarterly U.K. sectoral business investment data, we show that both common and sector–specific shocks play important roles in explaining business investment fluctuations. JEL: C32, E22, E32.
منابع مشابه
Research and Development Investment and Productivity Growth in Firms with Different Levels of Technology
I n the modern competitive world, Research and Development (R&D) and its overflowing technologies are the main basis of innovation, which in turn, can be determined as an important source of economic growth. Investing in research activities can help firms with different technological levels, especially high-tech industries to improve their productivity. This paper aims to analyze the...
متن کاملInvestment Concentration and the Importance of Cash Flow
Capital expenditures by the top 100 firms make up more than 60% of aggregate investment by publicly traded firms and account for most of the variation in aggregate net fixed private nonresidential investment. Surprisingly, these firms have the highest investment-cash flow sensitivity in the economy, despite being the least financially constrained. Further, contrary to the trend among smaller fi...
متن کاملAgency costs and efficiency of business capital investment: evidence from quarterly capital expenditures
Using the quarterly Compustat files, we present empirical findings that business capital investment is significantly higher in the fourth quarter than in other quarters. Even after controlling for business capital investment determinants, we find that the fourth quarter capital investment is significantly larger but less sensitive to investment opportunities than other quarters’ capital investm...
متن کاملThe Cross-sectional Determinants of Corporate Capital Expenditures: a Multinational Comparison**
This study predicts cross-sectional investment (asset-normalized capital expenditures) innovations within the United States, Canada, Great Britain, (mainland) Europe, and Japan. We find that lagged stock returns are the most important cross-sectional predictors of investment increases – except in mainland Europe. American firms tend to react more than Japanese firms but less than Canadian and B...
متن کاملThe Effects of Future Capital Investment and R&D Expenditures on Firms’ Liquidity
The paper explores factors that lead to accumulation or decumulation of firms’ cash reserves. In particular, we empirically examine whether additional future fixed capital and R&D investment expenditures induce firms to change their liquidity ratio while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German firms, we find that firms in al...
متن کامل