Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/14698
Author(s): | Barradas, R. Lagoa, S. |
Date: | 2017 |
Title: | Financialization and Portuguese real investment: a supportive or disruptive relationship? |
Volume: | 40 |
Number: | 3 |
Pages: | 413 - 439 |
ISSN: | 0160-3477 |
DOI (Digital Object Identifier): | 10.1080/01603477.2017.1286940 |
Keywords: | Financialization Investment Vector Error Correction Model |
Abstract: | The article makes an empirical analysis of the relationship between financialization and real investment by Portuguese nonfinancial corporations from 1979 to 2013. In theory, while financialization leads to a rise in financial investments by nonfinancial corporations and thus deviates funds from real investment, it also intensifies the pressure for financial payments and therefore restricts the funds available for real investment. We estimate an aggregate investment function including control variables (profitability, debt, cost of capital and output growth) and two measures of financialization (financial receipts and financial payments). The study concludes that there is a long-term investment equation, and finds evidence that the process of financialization has hampered real investment largely as a result of financial payments. The article also finds that profitability and debt are both detrimental to real investment. |
Peerreviewed: | yes |
Access type: | Open Access |
Appears in Collections: | DINÂMIA'CET-RI - Artigos em revistas internacionais com arbitragem científica |
Files in This Item:
File | Description | Size | Format | |
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Financialization and Portuguese Real Investment (A Supportive or Disruptive Relationship).pdf | Pós-print | 949,03 kB | Adobe PDF | View/Open |
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