We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Cross-Sectional Effect of Inflation on Corporate Investment and Employment.
- Authors
Kim, Moon K.; Chunchi Wu
- Abstract
This paper examines the cross-sectional effect of inflation on the investment and employment decisions. The paper shows that more heavily capitalized firms tend to have a greater reduction in the capital-labor ratio during an inflationary period. The paper also shows that firms with a higher cost of debt to wage ratios and a larger amount of depreciation shelter tend to use more labor in the inflationary period. Empirical results are generally consistent with these arguments.
- Subjects
EFFECT of inflation on investments; EFFECT of inflation on corporate profits; EFFECT of inflation on income; EMPLOYMENT; ELASTICITY (Economics)
- Publication
Review of Quantitative Finance & Accounting, 1993, Vol 3, Issue 2, p203
- ISSN
0924-865X
- Publication type
Article
- DOI
10.1007/BF02407006