JED, Vol 15, No.1, April 2013, pp 32-48 | DOI: 10.33301/2013.15.01.02
Determinants of Corporate Investment Decisions: The Case of Vietnam
Phan Dinh Nguyen; Phan Thi Anh Dong
Abstract:The purpose of this study is to examine determinants of corporate investment decisions. By adopting a static approach, the findings show that cash-flow, fixed capital intensity, business risk, leverage, and firm size are the key elements in making investment activities. Additionally, by using a dynamic approach, the results reveal that past investment also affects investment decisions at the firm level.
Keywords:Corporate investment, Tobin’s q, cash-flow, financial constraint.
