Financialization and Portuguese real investment: a supportive or disruptive relationship?

Detalhes bibliográficos
Autor(a) principal: Barradas, R.
Data de Publicação: 2017
Outros Autores: Lagoa, S.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/14698
Resumo: The article makes an empirical analysis of the relationship between financialization and real investment by Portuguese nonfinancial corporations from 1979 to 2013. In theory, while financialization leads to a rise in financial investments by nonfinancial corporations and thus deviates funds from real investment, it also intensifies the pressure for financial payments and therefore restricts the funds available for real investment. We estimate an aggregate investment function including control variables (profitability, debt, cost of capital and output growth) and two measures of financialization (financial receipts and financial payments). The study concludes that there is a long-term investment equation, and finds evidence that the process of financialization has hampered real investment largely as a result of financial payments. The article also finds that profitability and debt are both detrimental to real investment.
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spelling Financialization and Portuguese real investment: a supportive or disruptive relationship?FinancializationInvestmentVector Error Correction ModelThe article makes an empirical analysis of the relationship between financialization and real investment by Portuguese nonfinancial corporations from 1979 to 2013. In theory, while financialization leads to a rise in financial investments by nonfinancial corporations and thus deviates funds from real investment, it also intensifies the pressure for financial payments and therefore restricts the funds available for real investment. We estimate an aggregate investment function including control variables (profitability, debt, cost of capital and output growth) and two measures of financialization (financial receipts and financial payments). The study concludes that there is a long-term investment equation, and finds evidence that the process of financialization has hampered real investment largely as a result of financial payments. The article also finds that profitability and debt are both detrimental to real investment.Routledge/Taylor and Francis2017-11-22T12:36:13Z2019-05-22T00:00:00Z2017-01-01T00:00:00Z20172019-03-25T11:40:11Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/14698eng0160-347710.1080/01603477.2017.1286940Barradas, R.Lagoa, S.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:55:09Zoai:repositorio.iscte-iul.pt:10071/14698Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:28:00.410688Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Financialization and Portuguese real investment: a supportive or disruptive relationship?
title Financialization and Portuguese real investment: a supportive or disruptive relationship?
spellingShingle Financialization and Portuguese real investment: a supportive or disruptive relationship?
Barradas, R.
Financialization
Investment
Vector Error Correction Model
title_short Financialization and Portuguese real investment: a supportive or disruptive relationship?
title_full Financialization and Portuguese real investment: a supportive or disruptive relationship?
title_fullStr Financialization and Portuguese real investment: a supportive or disruptive relationship?
title_full_unstemmed Financialization and Portuguese real investment: a supportive or disruptive relationship?
title_sort Financialization and Portuguese real investment: a supportive or disruptive relationship?
author Barradas, R.
author_facet Barradas, R.
Lagoa, S.
author_role author
author2 Lagoa, S.
author2_role author
dc.contributor.author.fl_str_mv Barradas, R.
Lagoa, S.
dc.subject.por.fl_str_mv Financialization
Investment
Vector Error Correction Model
topic Financialization
Investment
Vector Error Correction Model
description The article makes an empirical analysis of the relationship between financialization and real investment by Portuguese nonfinancial corporations from 1979 to 2013. In theory, while financialization leads to a rise in financial investments by nonfinancial corporations and thus deviates funds from real investment, it also intensifies the pressure for financial payments and therefore restricts the funds available for real investment. We estimate an aggregate investment function including control variables (profitability, debt, cost of capital and output growth) and two measures of financialization (financial receipts and financial payments). The study concludes that there is a long-term investment equation, and finds evidence that the process of financialization has hampered real investment largely as a result of financial payments. The article also finds that profitability and debt are both detrimental to real investment.
publishDate 2017
dc.date.none.fl_str_mv 2017-11-22T12:36:13Z
2017-01-01T00:00:00Z
2017
2019-05-22T00:00:00Z
2019-03-25T11:40:11Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10071/14698
url http://hdl.handle.net/10071/14698
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0160-3477
10.1080/01603477.2017.1286940
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Routledge/Taylor and Francis
publisher.none.fl_str_mv Routledge/Taylor and Francis
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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