Abstract
We estimate investment-cash flow models for a large sample of firms in 13 transition economies over the period 1993–2003, and find that (1) investment-cash flow sensitivities decline over transition years; (2) for state-owned firms, in early transition the investment-cash flow sensitivity is negative, which we interpret as being consistent with soft budget constraints; (3) privatised firms invest efficiently; and (4) foreign-controlled firms are less financially constrained than other firms.
| Original language | English |
|---|---|
| Pages (from-to) | 62 - 81 |
| Journal | Comparative Economic Studies |
| Volume | 52 |
| DOIs | |
| Publication status | Published - 2010 |
| Externally published | Yes |
Austrian Classification of Fields of Science and Technology (ÖFOS)
- 502013 Industrial economics