Impact of Financial Position on Investment - Working Paper

Wo r k i n g Pa P e r S e r i e S

no 943 / SePtember 2008

the imPact of financial PoSition on inveStment an analySiS for non-financial corPorationS in the euro area

by Carmen Martinez-Carrascal and Annalisa Ferrando

WO R K I N G PA P E R S E R I E S

N O 9 4 3 / S E P T E M B E R 20 0 8

THE IMPACT OF FINANCIAL POSITION ON INVESTMENT AN ANALYSIS FOR NON-FINANCIAL CORPORATIONS IN THE EURO AREA 1

by Carmen Martinez-Carrascal 2 and Annalisa Ferrando 3

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This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=1268868.

1 This paper was to a large extent conducted while Carmen Martinez-Carrascal was working at the ECB. It has benefited from discussions with I. Hernando, M. C. Sanchez Carretero and P. Vermeulen and comments from an anonymous referee, from M. Andersson, C. Barceló, F. Drudi and the participants at the Workshop on Corporate Balance Sheet Data held at the ECB, at the XI Encuentro de Economia Aplicada and in an internal seminar in the Capital Markets and Financial Structure Division. We also want to thank A. Dalamangas and S. Scopel for their help with the data. The views expressed are those of the authors and should not be attributed to the Banco de España or to the European Central Bank. 2 Corresponding autor: Servicio de Estudios, Banco de España, Alcalá, 50, 28014 Madrid, Spain; e-mail: Carmen.Martinez@bde.es 3 Directorate Monetary Policy, European Central Bank, Kaiserstrasse 29, 30611 Frankfurt am Main, Germany; e-mail: Annalisa.Ferrando@ecb.europa.eu

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