Investment, R&D and liquidity constraints: A corporate governance approach to the Belgian evidence
In this contribution, we present a novel instrument to control for investment opportunities in studying the investment-cash-flow sensitivity. More in particular we introduce the book value of R&D. We argue this instrument has advantages over other theories of investment, especially when focussing on the corporate governance aspects of the investment-cash-flow sensitivity. On the other hand, it implies the investment-cash-flow sensitivity can only be studied in high-tech environments. These have corporate governance problems of their own. To investigate their effect, a signalling model is e... Mehr ...
| Verfasser: | |
|---|---|
| Dokumenttyp: | doc-type:workingPaper |
| Erscheinungsdatum: | 2002 |
| Verlag/Hrsg.: |
Brussels: National Bank of Belgium
|
| Schlagwörter: | ddc:330 / Investitionsentscheidung / Forschungskosten / Cash Flow / Betriebliche Liquidität / Corporate Governance / Belgien |
| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-28897190 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | http://hdl.handle.net/10419/144247 |
In this contribution, we present a novel instrument to control for investment opportunities in studying the investment-cash-flow sensitivity. More in particular we introduce the book value of R&D. We argue this instrument has advantages over other theories of investment, especially when focussing on the corporate governance aspects of the investment-cash-flow sensitivity. On the other hand, it implies the investment-cash-flow sensitivity can only be studied in high-tech environments. These have corporate governance problems of their own. To investigate their effect, a signalling model is extended for R&D induced investment opportunities, and estimated on a panel of Belgian data.