Does firm size matter? Evidence on the impact of liquidity constraint on firm investment behavior in Germany

Arbeitspapier

This paper examines the link between liquidity constraints and investment behavior for German firms of different sizes from 1970 to 1986. Results indicate that medium sized firms appear to be more liquidity constrained in their investment behavior than either the smallest or largest firms in the study, suggesting that the unique German infrastructure designed to assist the small firm has indeed succeeded in alleviating, to some degree, such liquidity constraints. Findings also support the hypothesis that the emerging competition and internationalism which characterized the German financial markets in the 1980's, have been improving access to capital for some groups of firms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: HWWA Discussion Paper ; No. 113

Classification and Topics

• Classification: Wirtschaft
• Subject: Investition ; Betriebsgröße ; Verschuldungsrestriktion ; Tobin's q ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Audretsch, David B. ; Elston, Julie Ann
• Event: Veröffentlichung
• (who): Hamburg Institute of International Economics (HWWA)
• (where): Hamburg
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/19438
• Last update: 10.03.2025, 11:44 AM CET