Tori, Daniele and Onaran, Özlem ORCID: 0000-0002-6345-9922 (2022) Financialisation and firm-level investment in developing and emerging economies. Cambridge Journal of Economics, 46 (4). pp. 891-919. ISSN 0309-166X (Print), 1464-3545 (Online) (doi:https://doi.org/10.1093/cje/beac030)

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Abstract

This article analyses the effects of financialisation on non-financial companies’ (NFCs) investment and explores the interactions between financialisation and the structural and institutional features of developing and emerging economies (DEEs). We estimate the effects of financialisation on physical investment for a sample of DEEs using panel data based on the balance sheets of publicly listed NFCs. Our main contribution is to assess the interactions between the financialisation of the NFCs and country-level financial development, financial reform, capital account openness and global value chain participation. We find that the effects of the financialisation of the NFCs in DEEs are highly context specific. Stock market development, financial reforms for liberalisation, capital account openness and participation in the global value chains are associated with more pronounced negative effects of financialisation on investment. Our analysis provides novel empirical evidence regarding the sources of variation in the financialisation of corporations in DEEs.

Item Type:	Article
Additional Information:	Manuscript ID CJE-2020-168.R1 accepted for special issue 'Financialisation in developing and emerging economies: Manifestations, Drivers and Implications.'
Uncontrolled Keywords:	financialization; investment; firm data; development
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of International Business & Economics Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA)
Last Modified:	05 Oct 2022 09:29
URI:	http://gala.gre.ac.uk/id/eprint/35887

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