Resource title

Investment, internal funds and public banking in Germany

Resource image

image for OpenScout resource :: Investment, internal funds and public banking in Germany

Resource description

Previous studies argued that low investment-cash flow sensitivities of German firms may be caused by dominance of public banking.The paper addresses this topic and applies a unique accounting dataset of German firms. Results from a dynamic panel data approach show that the dependence of investment spending on internal funds does not significantly differ between firms attached to savings banks, cooperative banks or commercial banks. Thus, the importance of the public banking sector in Germany may not explain the rather low dependence of firms on internal funds and public ownership of borrowers seems not essential to reduce financing constraints.

Resource author

Dirk Engel, Torge Middendorf

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26772

Resource license

Adapt according to the presented license agreement and reference the original author.