Does interest rate matters: study of investment management of Estonian companies. Intressimäärade mõju investeerimisotsustele Eesti ettevõtete näidetel

Danel Tuusis; Priit Sander; Andres Juhkam

doi:10.15157/tpep.v18i0.895

Does interest rate matters: study of investment management of Estonian companies. Intressimäärade mõju investeerimisotsustele Eesti ettevõtete näidetel

Danel Tuusis University of Tartu
Priit Sander University of Tartu
Andres Juhkam University of Tartu

DOI: https://doi.org/10.15157/tpep.v18i0.895

Keywords: investement management, intrest rates, liquidity management, channels of monetary transmission mechanisms

Abstract

The paper examines determinants of investment decisions of Estonian companies. Within investment decision determinants the influence of interest rates and cost of capital get special attention as well as the analysis of liquidity constraints. The study is based on answers of questionnaires received from 44 companies of Estonia. Results of the study show that most important determinants of investments are related to risk and uncertainty followed by liquidity constraints and business confidence determinants. Interest rate determinant and cost of capital consideration has small influence to investment decisions as well as have a low profile in overall management focus. Liquidity constraints on other hand should be considered an important decision factor behind investment decisions

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How to Cite

Tuusis, D., Sander, P., & Juhkam, A. (1). Does interest rate matters: study of investment management of Estonian companies. Intressimäärade mõju investeerimisotsustele Eesti ettevõtete näidetel. Estonian Discussions on Economic Policy, 18. https://doi.org/10.15157/tpep.v18i0.895

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Issue

Vol. 18 (2010)

Section

Articles. Artikeln. Artiklid

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