Title

Companies' investment decisions in the NICS-evidence from Taiwan and South Korea

Document Type

Article

Date of Original Version

1-1-1995

Abstract

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

International Review of Economics and Finance

Volume

4

Issue

3

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