Журнал "Проблеми економіки"

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Determinants of Investment Decisions in Tech Firms: Evidence from GMM Analysis of Panel Data Across 23 OECD Countries
(Науково-дослідний центр індустріальних проблем розвитку НАН України, 2024) Alexeeva-Alexeev, Inna; Алексєєва-Алексєєв, Інна
Corporate investment decision has been a recurrent topic in literature for the last decades. However, there is little studied about what internal and external factors influence this decision in the companies of the Information and Communication Technologies (ICT) sector, so important for technological development of business and economies. The objective of this empirical study is to analyze the impact generated by firm- and country-level variables on the investment decision-making by technological firms. The analysis, made with GMM of two steps of 19,613 observations obtained from 1,661 listed ICT companies in 23 OECD countries between 2003 and 2019. The data were obtained through various databases, such as S&P Capital IQ, World Bank's World Development Indicators, International Monetary Fund statistics and the OECD's Main Science and Technology Indicators (MSTI). The results of the study suggest that corporate investments of tech firms highly depend on internal and external financing. There are other interesting findings showing significant impact generated by other firm- and country-level variables both in ICT manufacturing and services subsectors.