Journal of Financial Intermediation Vol. 1 No. 4 1991
Investment and financial asset accumulation
Abstract
This paper uses firm-level panel data to investigate the proposition that reliquification is an important phase of the business cycle. It occurs late during recessions and is characterized by prolonged reductions in real investment, caused by firms needing to accumulate assets in order to improve their financial health. The paper concludes that a buildup of assets precedes an increase in investment. This effect is more important for firms without access to organized bond markets and during recession years.
- DOI
- 10.1016/1042-9573(91)90003-i
- Volume
- 1
- Issue
- 4
- Pages
- 307-334
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref