Investment, R&D and liquidity constraints: A corporate governance approach to the Belgian evidence

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: NBB Working Paper ; No. 33

Classification and Topics

• Classification: Wirtschaft
• Subject: Investitionsentscheidung ; Forschungskosten ; Cash Flow ; Betriebliche Liquidität ; Corporate Governance ; Belgien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Van Cayseele, Pr. D. Patrick
• Event: Veröffentlichung
• (who): National Bank of Belgium
• (where): Brussels
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/144247
• Last update: 10.03.2025, 11:41 AM CET