Navigating Investment Waters: Uncovering the Impact of Financial Factors on Business Behavior in Small Economies

Ieva Statkevičiūtė, E. Bikas, Viktorija Cohen
{"title":"Navigating Investment Waters: Uncovering the Impact of Financial Factors on Business Behavior in Small Economies","authors":"Ieva Statkevičiūtė, E. Bikas, Viktorija Cohen","doi":"10.5539/res.v16n1p16","DOIUrl":null,"url":null,"abstract":"Using companies listed on the Nasdaq Baltic Stock Exchange (2017–2021), we analyze the influence of financial factors on the investment behavior of businesses in small economies. We run a panel regression to examine which financial factors influence corporate investment and study how business investment is affected by the previous year’s cash flow, leverage ratio, asset turnover, liquidity, and sales volume. Our findings reveal robust evidence that the level of the investment of firms is negatively affected by the leverage ratio and positively affected by the asset turnover ratio. We also find that the cash flow to asset ratio has a negative but statistically insignificant affection investment. This implies that businesses in small economies are not interested in the capital market. Companies should consider taking the leverage ratio into account and incorporating it in their investment decision-making models.","PeriodicalId":92134,"journal":{"name":"Review of European studies","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2024-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of European studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5539/res.v16n1p16","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0

Abstract

Using companies listed on the Nasdaq Baltic Stock Exchange (2017–2021), we analyze the influence of financial factors on the investment behavior of businesses in small economies. We run a panel regression to examine which financial factors influence corporate investment and study how business investment is affected by the previous year’s cash flow, leverage ratio, asset turnover, liquidity, and sales volume. Our findings reveal robust evidence that the level of the investment of firms is negatively affected by the leverage ratio and positively affected by the asset turnover ratio. We also find that the cash flow to asset ratio has a negative but statistically insignificant affection investment. This implies that businesses in small economies are not interested in the capital market. Companies should consider taking the leverage ratio into account and incorporating it in their investment decision-making models.
领航投资领域:探索金融因素对小型经济体商业行为的影响
我们利用在纳斯达克波罗的海证券交易所上市的公司(2017-2021 年),分析了金融因素对小型经济体企业投资行为的影响。我们通过面板回归来考察哪些金融因素会影响企业投资,并研究企业投资如何受到上一年现金流、杠杆比率、资产周转率、流动性和销售量的影响。我们的研究结果表明,企业投资水平受杠杆比率的负面影响,受资产周转率的正面影响。我们还发现,现金流与资产比率对投资的影响为负,但在统计上并不显著。这意味着小型经济体的企业对资本市场不感兴趣。企业应考虑将杠杆比率纳入其投资决策模型。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
自引率
0.00%
发文量
0
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信