Financial constraints and their impact on the investments of Algerian companies applied study on a sample of Algerian companies during the period (2012-2017)
Keywords:
financial constraints, sensitivity, Internal financing, investment
Abstract
The paper aimed to test the exposure of Algerian companies to financial constraints by studying the sensitivity of investment to internal financing on a sample of 77 companies in the period (2012-2017), using the GMM method for estimating the model. The study concluded that Algerian companies face financial constraints, which translate into the sensitivity of investment to the availability of self-financing. Also, larger and older companies face higher sensitivity compared to smaller and newer companies
