This paper aim at exploring the investment behavior of Italian building firms during the ongoing crisis. Firms investment decisions determine their debt and cash policies, and this allows to classifying them as conservative or speculative. Conservativism approach is the firm tendency to accumulate money to fund their investment using an internal source on external ones. Consequently, conservative firms could renounce investments, even profitable and affordable, to avoid indebtedness. Using a panel logit data analysis, it is checked conservativism aptitude for Italian building firms and how this phenomenon has evolved over the considered sample period. It is tested the hypothesis that the magnitude of the regressor coefficients for covariates explaining investment behavior during this period has changed. This paper is organized as follows: Section 1 introduces the existing literature about corporate finance, firm investment policies and conservativism. Section 2 describes data, methodology and the empirical framework. Section 4 shows and discuss results. Section 5 concludes.

Conservativism in Italian Building Firms during the Crisis

FORGIONE, Antonio Fabio
Primo
;
NANIA, IVAN
Ultimo
2016-01-01

Abstract

This paper aim at exploring the investment behavior of Italian building firms during the ongoing crisis. Firms investment decisions determine their debt and cash policies, and this allows to classifying them as conservative or speculative. Conservativism approach is the firm tendency to accumulate money to fund their investment using an internal source on external ones. Consequently, conservative firms could renounce investments, even profitable and affordable, to avoid indebtedness. Using a panel logit data analysis, it is checked conservativism aptitude for Italian building firms and how this phenomenon has evolved over the considered sample period. It is tested the hypothesis that the magnitude of the regressor coefficients for covariates explaining investment behavior during this period has changed. This paper is organized as follows: Section 1 introduces the existing literature about corporate finance, firm investment policies and conservativism. Section 2 describes data, methodology and the empirical framework. Section 4 shows and discuss results. Section 5 concludes.
2016
978-88-255-0444-6
File in questo prodotto:
File Dimensione Formato  
Copertina - Aracne 2016.pdf

solo utenti autorizzati

Descrizione: Copertina
Tipologia: Altro materiale allegato (es. Copertina, Indice, Materiale supplementare, Brevetti, Spin off, Start up, etc.)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 1.24 MB
Formato Adobe PDF
1.24 MB Adobe PDF   Visualizza/Apri   Richiedi una copia
3111084.pdf

solo utenti autorizzati

Descrizione: Contributo
Tipologia: Versione Editoriale (PDF)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 300.58 kB
Formato Adobe PDF
300.58 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11570/3111084
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact