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

Dongna Zhang

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    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 languageEnglish
    Article number109389
    JournalEconomics Letters
    Volume194
    DOIs
    Publication statusPublished - 7 Jul 2020

    Bibliographical note

    Publisher Copyright:
    © 2020 Elsevier B.V.

    Copyright:
    Copyright 2020 Elsevier B.V., All rights reserved.

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