A. Guariglia
Inventory Investment, Global Engagement, and Financial Constraints in the UK: Evidence from Micro Data
Guariglia, A.; Mateut, S.
Authors
S. Mateut
Abstract
We use a panel of 9381 UK firms to study the links between firms’ global engagement status and their financial health. We estimate inventory investment equations augmented with a financial composition variable, and interpret the sensitivity of inventory investment to the latter as a measure of the strength of the financial constraints faced by firms. We find that smaller, younger, and more risky firms; and firms that do not export and are not foreign owned exhibit higher sensitivities. Moreover, global engagement substantially reduces the sensitivities displayed by the former categories of firms: this suggests that it shields firms from financial constraints.
Citation
Guariglia, A., & Mateut, S. (2010). Inventory Investment, Global Engagement, and Financial Constraints in the UK: Evidence from Micro Data. Journal of Macroeconomics, 32(1), 239-250. https://doi.org/10.1016/j.jmacro.2009.03.001
Journal Article Type | Article |
---|---|
Publication Date | Mar 1, 2010 |
Deposit Date | Jun 9, 2009 |
Publicly Available Date | Jun 9, 2009 |
Journal | Journal of Macroeconomics |
Print ISSN | 0164-0704 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 32 |
Issue | 1 |
Pages | 239-250 |
DOI | https://doi.org/10.1016/j.jmacro.2009.03.001 |
Keywords | Financial constraints, Global engagement, Inventory investment. |
Public URL | https://durham-repository.worktribe.com/output/1528761 |
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