IDEAS home Printed from https://ideas.repec.org/a/taf/macfem/v13y2020i2p140-160.html
   My bibliography  Save this article

Determinants of firm-level investment in India: does size matter?

Author

Listed:
  • Parul Bhardwaj
  • Abhishek Kumar

Abstract

The study estimates the dynamic panel version of augmented neoclassical investment model using ARDL specification. There are evidence in support of interest rate and credit channels of monetary transmission. Our evidence of interest rate channel is robust and is not driven by outliers on the basis of size, investment to capital and cash flow to capital ratio. We also correct for the presence of financially distressed and constrained firms. The heterogeneous impact of cash flow to capital stock ratio on investment spending of small and large firms provides further evidence in favour of working of credit channel.

Suggested Citation

  • Parul Bhardwaj & Abhishek Kumar, 2020. "Determinants of firm-level investment in India: does size matter?," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 13(2), pages 140-160, May.
    • Handle: RePEc:taf:macfem:v:13:y:2020:i:2:p:140-160
    DOI: 10.1080/17520843.2019.1667848
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17520843.2019.1667848
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17520843.2019.1667848?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yi, Er, 2023. "Corporate governance, information disclosure and investment - Cash flow sensitivity," Finance Research Letters, Elsevier, vol. 55(PB).
    2. Sahoo, Pravakar & Bishnoi, Ashwani, 2023. "Drivers of corporate investment in India: The role of firm-specific factors and macroeconomic policy," Economic Modelling, Elsevier, vol. 125(C).
    3. Debarati Ghosh & Meghna Dutta, 2021. "Investment behaviour under financial constraints: a study of Indian firms," SN Business & Economics, Springer, vol. 1(8), pages 1-15, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:macfem:v:13:y:2020:i:2:p:140-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.