Financialization and Portuguese real investment: a supportive or disruptive relationship?
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Outros Autores: | |
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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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 |
instacron_str |
RCAAP |
institution |
RCAAP |
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 |
repository.mail.fl_str_mv |
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1799134842925875200 |