Intangibles and the UK under-investment puzzle: Evidence from firm-level panel data

Dongna Zhang

doi:10.1016/j.econlet.2020.109389

Intangibles and the UK under-investment puzzle: Evidence from firm-level panel data

Dongna Zhang^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

11 Downloads (Pure)

Abstract

This paper analyses the relationship between intangibles and the low business investment relative to Q at the firm-level. Using a large panel of UK firms, the findings suggest that a negative association exists between intangibles and fixed investment. The under-investment gap since 2002 can be largely reduced by controlling for intangibles. In particular, the impact is magnified for firms with higher leverage, lower tangibility and lower labour productivity.

Original language	English
Article number	109389
Journal	Economics Letters
Volume	194
Early online date	7 Jul 2020
DOIs	https://doi.org/10.1016/j.econlet.2020.109389
Publication status	Published - 1 Sept 2020
Externally published	Yes

Keywords

Investment
Tobin’s Q
Intangibles

Access to Document

10.1016/j.econlet.2020.109389

Manuscript_Dongna_ZhangAccepted author manuscript, 373 KBLicence: CC BY-NC-ND

https://research.tees.ac.uk/en/publications/intangibles-and-the-uk-under-investment-puzzle-evidence-from-firmLicence: CC BY-NC-ND

Cite this

@article{3ca54438ade343989b3a826fa58850d3,

title = "Intangibles and the UK under-investment puzzle: Evidence from firm-level panel data",

abstract = "This paper analyses the relationship between intangibles and the low business investment relative to Q at the firm-level. Using a large panel of UK firms, the findings suggest that a negative association exists between intangibles and fixed investment. The under-investment gap since 2002 can be largely reduced by controlling for intangibles. In particular, the impact is magnified for firms with higher leverage, lower tangibility and lower labour productivity.",

keywords = "Investment, Tobin{\textquoteright}s Q, Intangibles",

author = "Dongna Zhang",

year = "2020",

month = sep,

day = "1",

doi = "10.1016/j.econlet.2020.109389",

language = "English",

volume = "194",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier",

}

TY - JOUR

T1 - Intangibles and the UK under-investment puzzle: Evidence from firm-level panel data

AU - Zhang, Dongna

PY - 2020/9/1

Y1 - 2020/9/1

N2 - This paper analyses the relationship between intangibles and the low business investment relative to Q at the firm-level. Using a large panel of UK firms, the findings suggest that a negative association exists between intangibles and fixed investment. The under-investment gap since 2002 can be largely reduced by controlling for intangibles. In particular, the impact is magnified for firms with higher leverage, lower tangibility and lower labour productivity.

AB - This paper analyses the relationship between intangibles and the low business investment relative to Q at the firm-level. Using a large panel of UK firms, the findings suggest that a negative association exists between intangibles and fixed investment. The under-investment gap since 2002 can be largely reduced by controlling for intangibles. In particular, the impact is magnified for firms with higher leverage, lower tangibility and lower labour productivity.

KW - Investment

KW - Tobin’s Q

KW - Intangibles

U2 - 10.1016/j.econlet.2020.109389

DO - 10.1016/j.econlet.2020.109389

M3 - Article

SN - 0165-1765

VL - 194

JO - Economics Letters

JF - Economics Letters

M1 - 109389

ER -

Intangibles and the UK under-investment puzzle: Evidence from firm-level panel data

Abstract

Keywords

Access to Document

Fingerprint

Cite this