Seminar by Theodore Panagiotidis (UoM)

On Thursday the 1^st of December at 13:00, TIME MBE will present the following seminar by Theodore Panagiotidis (UoM), “Investment Decisions and Macroeconomic Uncertainty: Firm Level Evidence from Greece”.

The abstract of the paper to be presented is:

We investigate the effect of macroeconomic uncertainty on investment. We employ a sample consisting of annual data from 25000 Greek firms’ balance sheets covering the period from 2000 to 2014. A dynamic factor model is employed to proxy macroeconomic volatility. The investment performance of 14 sectors is examined within a dynamic investment model. Robust GMM estimates of the investment rate model reveal a high degree of heterogeneity among the sectors. Macroeconomic uncertainty affects negatively investment performance. Agriculture is the least affected and among the most affected are Community, Health, Real Estate and Hotels. Comparing the response of investment to uncertainty, it emerges that (relative) smaller firms are more negatively affected compared to larger ones.