Financial development, financial constraint, and firm investment: Evidence from Thailand

Authors

  • Attasuda Lerskullawat Department of Economics, Faculty of Economics, Kasetsart University, Bangkok 10900, Thailand

Keywords:

financial development, firm financial condition, firm financial constraint, firm investment, Thailand

Abstract

     This paper examines the effect of firm financial constraint and financial development on firm investment using data from non-financial companies in Thailand from 1999Q1 to 2015Q4. The empirical results showed a significant effect of firm financial constraint on their investment. The cash flow of firms had a positive effect on firm investment, while the leverage ratio of firms had a negative effect. Financial development also weakened the effect of firm financial constraint on firm investment. These effects were considerably higher in more financially constrained firms than less constrained ones.

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Published

12-02-2018

How to Cite

Lerskullawat, A. (2018). Financial development, financial constraint, and firm investment: Evidence from Thailand. Kasetsart Journal of Social Sciences, 40(1), 55–66. Retrieved from https://so04.tci-thaijo.org/index.php/kjss/article/view/235365

Issue

Vol. 40 No. 1 (2019): January - April

Section

Research articles

License

Copyright (c) 2018 Kasetsart University

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This is an open access article under the CC BY-NC-ND license http://creativecommons.org/licenses/by-nc-nd/4.0/