-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
DO FINANCIAL LAWS AFFECT INVESTMENT DETERMINANTS? SOME EUROPEAN EVIDENCE
Download This Article
Natalia Utrero-González 
Abstract
Investment-cash flow sensitivities have been extensively analysed. One reason for the excess sensitivity between investment and internal resources is market imperfections. In this article, we try to determine whether this relationship is either affected by the nature of the financial system or associated to other firmspecific determinants such as size or industry. Results show that prudent banking regulation and creditor legal protection reduce investment-cash flow sensitivities, that is, alleviate the inefficiencies associated to asymmetric information and capital market frictions. However, firm characteristics still have a word to say when taking into account financial regulations.
Keywords: Investment, Financial Restrictions, Investor Protection, Banking Law
How to cite this paper: Utrero-González, N. (2007). Do financial laws affect investment determinants? Some European evidence. Corporate Ownership & Control, 4(3-2), 251-265. https://doi.org/10.22495/cocv4i3c2p3
