The effects of financialization on investment: evidence from firm-level data for the UK

@article{Tori2015TheEO,
  title={The effects of financialization on investment: evidence from firm-level data for the UK},
  author={Daniele Tori and {\"O}zlem Onaran},
  journal={Cambridge Journal of Economics},
  year={2015},
  volume={42},
  pages={1393-1416}
}
This paper estimates the effects of financialization on physical investment in the UK using panel data based on balance-sheets of publicly listed non-financial companies supplied by Worldscope for the period 1985-2013. We find robust evidence of an adverse effect of not only financial payments (interests and dividends) but also financial incomes on the rate of accumulation. The negative impacts of financial incomes from interests and dividends are particularly strong for the pre-crisis period… 

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