Financing constraints, fixed capital and R&D investment decisions of belgian firms

Arbeitspapier

This paper aims at assessing the relationship between the possible existence of financial constraints and the decisions of Belgian private firms as regards their investments in both capital and R&D investments over the last decade. The main system GMM estimates from the error-correction equations indicate that the sensitivity of both types of investments to cash flow variations are rather differentiated. On the whole, these effects are more important for investments in ordinary assets, young small-scale firms located in the Walloon region that are not part of a multinational. Firms that perform R&D on a permanent basis and that receive public funds to support these activities appear to be less cash constraints.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: NBB Working Paper ; No. 32

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Investment; Capital; Intangible Capital; Capacity ; Innovation and Invention: Processes and Incentives
• Subject: financial constraints ; investments in capital and R&D ; Belgian private companies ; error-correction investment equations ; system GMM panel data econometric models ; Investitionsentscheidung ; Betriebliches Anlagevermögen ; Forschungskosten ; Fremdkapital ; Belgien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cincera, Michele
• Event: Veröffentlichung
• (who): National Bank of Belgium
• (where): Brussels
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/144246
• Last update: 10.03.2025, 11:43 AM CET