Abstract Using a sample of comparably sized public listed and private firms from nine European countries, we show that reduce their investments by about 50% more than in response to an increase policy-related uncertainty. We find suggestive evidence this can be explained firms’ management being typically subject greater shareholder scrutiny management. Furthermore, only invest efficiently when ...

Article history: Received 6 March 2012 Received in revised form 30 May 2013 Accepted 4 June 2013 Available online 11 June 2013 We suggest that the limited access to the public debt market is a reason for the violations of pecking order behavior documented in literature. We show that as information asymmetry increases, two effects take place. On the one hand, firms do desire to increase the debt...

We propose a signalling model in which the central bank and firms receive information on cost-push shocks independently of each other. If the firms are rather unlikely to receive information directly, the central bank should remain silent about its own private information. If, however, firms are sufficiently likely to be informed,. it is socially desirable for the central bank to reveal its own...

A recent, comprehensive database is used to investigate the link between inward foreign direct investment (FDI) and innovation activity in China. The results of the analysis suggest that private and collectively owned firms with foreign capital participation and those with good access to domestic bank loans innovate more than other firms do. Among enterprises not owned by the state, inward FDI ...