Yes / In this paper, we empirically analyze the impact of ownership groups on companies’ investment rates in Ukraine using a new dynamic Tobin’s Q model allowing investment rates to depend on present and lagged Q. We find that the presence of a majority in and increases in state, non-domestic and financial companies’ ownership has a significantly negative impact on investment rates. State and insider ownership are associated with soft budget constraints whereas non-domestic, financial companies’ and financial and industrial groups’ ownership with hard budget constraints. The dynamic model shows persistence in the market-to-book value of equity, the proxy for Q.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/11241 |
| Date | January 2016 |
| Creators | Mykhayliv, Dariya, Zauner, K.G. |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Working Paper, Accepted manuscript |
| Rights | © 2016 The Authors. Reproduced by permission from the copyright holder. |
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