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

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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 language	English
Article number	109389
Journal	Economics Letters
Volume	194
DOIs	https://doi.org/10.1016/j.econlet.2020.109389
Publication status	Published - 7 Jul 2020

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© 2020 Elsevier B.V.

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

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Manuscript-Dongna ZhangAccepted author manuscript, 373 KBLicence: CC BY-NC-ND

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

Abstract

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