Firm Investment and Financial Conditions in the Euro Area: Evidence from Firm-Level Data

Balfoussia, Hiona; Gibson, Heather D.

doi:10.2139/ssrn.4186679

Cited by 4 publications

(3 citation statements)

References 56 publications

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“…In assessing the effect of loan supply shocks on investment activity, most studies rely on disaggregated micro (firm-level) data. These micro studies strongly support the view that credit supply factors are important for investment activity, particularly during crisis periods, as for instance shown in Amador and Nagengast (2016), Balfoussia and Gibson (2016), Cingano et al (2016), Gaiotti (2013) and García-Posada (2018), among others. Buca and Vermeulen (2015), for example, confirm the importance of credit market conditions for investment activity on a sector level.…”

Section: Importance Of Credit Supply Shocks -Results From Vars With S...supporting

confidence: 78%

Business investment in EU countries

et al. 2018

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Section: Importance Of Credit Supply Shocks -Results From Vars With S...supporting

confidence: 78%

Business investment in EU countries

et al. 2018

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“…Henceforth 1<q shows that the firm should accumulate more wealth and vice versa (Balfoussia & Gibson, 2016).…”

Section: Q Theory Of Investmentmentioning

confidence: 99%

Investment Diversification and Financial Performance of Microfinance Banks in Kenya

NYABERA,

OTINGA, PhD, CPA,

MIROGA, PhD

2024

strategicjournals.com

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This study examined the effect of investment diversification on profitability of microfinance banks in Kenya. The specific objectives were to determine the effect of investment in Fixed deposits, investment in shares, investment in government securities and real estate investment on profitability of microfinance banks in Kenya. The study adopted a casual research design approach where the target population was based on 13 microfinance banks in Kenya. This study covered a 5-year period from 2017 to 2021. The study used secondary data that was extracted from the websites of the respective Microfinance banks. Both descriptive and inferential statistics were computed using STATA 15. Descriptive statistics included mean, standard deviation, Maximum and minimum. Inferential analysis included Pearson correlation and linear regression analyses. The study used panel regression analytical model. This study conducted serial correlation tests, heteroscedasticity tests and multicollinearity test to evaluate the data collected before the actual analysis. The findings revealed that investment diversification has positive effect on financial performance of microfinance banks in Kenya although there was mixed outcome in regards to significant effect. Investment in fixed deposits, real estate and shares were found to have significant effect whereas government securities was found to have insignificant positive effect. In this regard, the study concluded that investment diversification has positive effect on financial performance of microfinance banks in Kenya. The study therefore recommended management of microfinance banks microfinance banks should compare each of the fixed deposit options basing on desired risk, interest rate, and tenure, and choose a fixed deposit only after weighing the benefits and drawbacks of various fixed deposits on the market. High liquidity produced by microfinance banks' client deposits should be invested in a variety of government securities and bonds, which are backed by the government, the study suggested. The study recommended that microfinance banks can buy short-term Treasury bills directly or through a bank or broker.

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“…Hence 1 < q indicates that the firm should accrue more capital (i.e. embark on extra investment) and vice versa (Balfoussia & Gibson, 2016).…”

Section: The Q Theory Of Investmentmentioning

confidence: 99%

The Intervening Effect of Investment Policies on the Relationship between Corporate Governance and Performance of Pension Fund Managers in Kenya

Ali¹

2022

JPPG

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The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement. These targeted investments often require union built construction or are aimed at job creation and retention as in the case of private equity investments. Pension fund performance has received increased attention across the world with public pension fund performing dismally when compared to private pension fund.. This study sought to determine the intervening effect of investment policies on the relationship between corporate governance and performance of pension fund managers in Kenya. The study employed a cross sectional survey design whereby access to the widest possible amount of data from the targeted Fund Managers in Kenya was sought. The population of interest of the study was 31 Fund Managers in Kenya licensed by RBA and CMA. The study used purely primary data sources. Primary data was obtained from the selected respondents. Primary data was collected through questionnaire. Regression analysis was used to establish the relative significance of each of the variables on the influence of corporate governance on the performance of pension fund managers in Kenya. The study findings indicated that there exists a partial mediation effect on the mediating role of investment policies on the relationship between corporate governance and performance of pension fund managers. The study thus, rejected the null hypothesis and adopted the alternative hypothesis that there is a partial intervening effect of investment policies in the relationship between corporate governance and performance of pension fund managers in Kenya. The study recommends that the governing body of the pension fund should set forth in a written statement and actively observe an overall investment policy. The investment policy should establish clear investment objectives for the pension fund that are consistent with the retirement income objective of the pension fund and, therefore, with the characteristics of the liabilities of the pension fund and with the acceptable degree of risk for the pension fund, the plan sponsor and the plan members and beneficiaries. The approach for achieving those objectives should satisfy the prudent person standard taking into account the need for proper diversification and risk management, the maturity of the obligations and the liquidity needs of the pension fund, and any specific legal limitations on portfolio allocation. Keywords: Investment Policies, Corporate Governance, Performance & Pension Fund Managers.

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Firm Investment and Financial Conditions in the Euro Area: Evidence from Firm-Level Data

Cited by 4 publications

References 56 publications

Business investment in EU countries

Business investment in EU countries

Investment Diversification and Financial Performance of Microfinance Banks in Kenya

The Intervening Effect of Investment Policies on the Relationship between Corporate Governance and Performance of Pension Fund Managers in Kenya

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