Companies' investment decisions in the NICS-evidence from Taiwan and South Korea
Date of Original Version
This study considers the determinants of investment among manufacturing companies in two Newly Industrializing Countries, Taiwan and South Korea. Using company accounts data from the Pacific Basin Capital Markets Databases, traditional factors such as accelerator effects, liquidity constraints and cost of capital are considered, as well stock market influences embodied in Tobin's Q. Diversity in companies' investment behavior is also examined. Investment among Taiwanese companies appears to be principally affected by the traditional factors, whereas stock market considerations appear to be more relevant for investment in South Korea. JEL Classification: 016, G30. © 1995.
Publication Title, e.g., Journal
International Review of Economics and Finance
Chen, Shaw, and Gopa Chowdhury. "Companies' investment decisions in the NICS-evidence from Taiwan and South Korea." International Review of Economics and Finance 4, 3 (1995): 283-298. doi: 10.1016/1059-0560(95)90045-4.