English, Article, Journal or magazine article edition: The impact of financial variables on firms' real decisions: evidence from Spanish firm-level data Ignacio Hernando; Carmen Martínez-Carrascal

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/158050
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The impact of financial variables on firms' real decisions: evidence from Spanish firm-level data
Author
  • Ignacio Hernando
  • Carmen Martínez-Carrascal
Physical Description
  • preprint
Notes
  • This paper analyses the impact of alternative measures of firms' financial health on their investment and employment decisions. The emphasis is on the analysis of disaggregated data on such financial indicators. For this purpose, itemised data from a sample of the non-financial firms reporting to the Banco de España Central Balance Sheet Data Office Annual Database for the period 1985-2001 is used. We find that corporate financial position –proxied by alternative indicators– affects business activity and that this impact is non-linear and becomes relatively more intense when financial pressure exceeds a certain threshold. We also construct, using different financial variables, composite indicators that summarize the non-linear impact that the financial position has on investment and employment. Our results suggest that the use of firm-level data is particularly relevant in episodes where the financial pressure on a significant number of firms reaches levels at which it has a pronounced influence on real activity. In these episodes, indicators based on aggregate data may not reliably reflect the system's financial soundness since they do not adequately reflect the vulnerability of the most fragile companies.
  • financial conditions, fixed investment, employment
  • RePEc:bde:wpaper:0319
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment