What can company data tell us about financing and investment decisions?

Katie Farrant, Magda Rutkowska, Konstantinos Theodoridis 09 February 2014

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Following the financial crisis, UK companies revised their spending and financing decisions dramatically. They reduced investment by around 13% in real terms between 2008 and 2012 (Besley and Van Reenen 2013, Haddow et al. 2013). But during that same period, corporate bond issuance by UK companies was strong, with record corporate bond issuance in 2012. Taken at face value, this might appear puzzling, as one might expect strong bond issuance to feed into stronger investment.

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Topics:  Financial markets Global crisis

Tags:  UK, investment decline, corporate bond issuance