Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?

Detalhes bibliográficos
Autor(a) principal: Oliveira,Fernando N. de
Data de Publicação: 2019
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402019000200235
Resumo: Abstract Our objective in this paper is to estimate the dynamics of firm investment in Brazil. For this purpose, we built an original database with confidential and public data containing balance sheet and financial information of 4,876 public and private firms from 1995 to 2010. We then classify these firms as financially restricted or not. Our results show that the effects of unexpected monetary shocks and financial restrictions over investment are economic and statistically significant in Brazil. Unexpected monetary contractions and financial restrictions decrease investment, while unexpected monetary expansions increase investment. We also find strong empirical evidence that financing from BNDES, Brazil’s development bank, affects positively the dynamics of investment and that this effect is economic and statistically significant. Our results are robust to several model specifications and econometric techniques.
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spelling Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?Investmentunexpected monetary shocksfirms financially restrictedBNDESAbstract Our objective in this paper is to estimate the dynamics of firm investment in Brazil. For this purpose, we built an original database with confidential and public data containing balance sheet and financial information of 4,876 public and private firms from 1995 to 2010. We then classify these firms as financially restricted or not. Our results show that the effects of unexpected monetary shocks and financial restrictions over investment are economic and statistically significant in Brazil. Unexpected monetary contractions and financial restrictions decrease investment, while unexpected monetary expansions increase investment. We also find strong empirical evidence that financing from BNDES, Brazil’s development bank, affects positively the dynamics of investment and that this effect is economic and statistically significant. Our results are robust to several model specifications and econometric techniques.Fundação Getúlio Vargas2019-06-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402019000200235Revista Brasileira de Economia v.73 n.2 2019reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.5935/0034-7140.20190011info:eu-repo/semantics/openAccessOliveira,Fernando N. deeng2019-07-17T00:00:00Zoai:scielo:S0034-71402019000200235Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/rbe/issue/archivehttps://old.scielo.br/oai/scielo-oai.php||rbe@fgv.br1806-91340034-7140opendoar:2019-07-17T00:00Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
title Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
spellingShingle Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
Oliveira,Fernando N. de
Investment
unexpected monetary shocks
firms financially restricted
BNDES
title_short Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
title_full Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
title_fullStr Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
title_full_unstemmed Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
title_sort Investment of Firms in Brazil: Do Financial Restrictions, Unexpected Monetary Shocks and BNDES Play Important Roles?
author Oliveira,Fernando N. de
author_facet Oliveira,Fernando N. de
author_role author
dc.contributor.author.fl_str_mv Oliveira,Fernando N. de
dc.subject.por.fl_str_mv Investment
unexpected monetary shocks
firms financially restricted
BNDES
topic Investment
unexpected monetary shocks
firms financially restricted
BNDES
description Abstract Our objective in this paper is to estimate the dynamics of firm investment in Brazil. For this purpose, we built an original database with confidential and public data containing balance sheet and financial information of 4,876 public and private firms from 1995 to 2010. We then classify these firms as financially restricted or not. Our results show that the effects of unexpected monetary shocks and financial restrictions over investment are economic and statistically significant in Brazil. Unexpected monetary contractions and financial restrictions decrease investment, while unexpected monetary expansions increase investment. We also find strong empirical evidence that financing from BNDES, Brazil’s development bank, affects positively the dynamics of investment and that this effect is economic and statistically significant. Our results are robust to several model specifications and econometric techniques.
publishDate 2019
dc.date.none.fl_str_mv 2019-06-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402019000200235
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402019000200235
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.5935/0034-7140.20190011
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Fundação Getúlio Vargas
publisher.none.fl_str_mv Fundação Getúlio Vargas
dc.source.none.fl_str_mv Revista Brasileira de Economia v.73 n.2 2019
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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