Corporate Investments in India: Lack of Investment Opportunity or Lack of Funds? | Mostly Economics
Amiyatosh Purnanandam and Arushi Sharma discuss what hinders corporate investments in India: This study investigates the key drivers of corporate investment in India. Specifically, we analyze the relative importance of investment opportunities available to firms, measured by Tobin’s Q, and financial constraints they face in capitalizing on these opportunities. We show that capital expenditure responds…