Abstract
Abstract In this paper, we attempt to investigate the importance of certain external factors on the investment decisions made by Polish companies. With the use of data from the tailor-made Survey on Receivables, we (1) examine factors influencing investment decisions of companies in Poland; (2) assess the relation between branch, company size and investment factors; (3) evaluate the importance of the investment factors; and (4) determine the relative influence of these factors on the company-level investment reductions. The results show that first, although the problem of payment delays is the most important single issue determining the investment decisions of Polish companies, its importance decreases when analysed simultaneously with other issues. Second, among the indicators selected for an assessment of investment decisions, two driving forces determine the investment decisions of Polish companies - namely, macroeconomic factors and law-related factors, with the relative importance of the former lower than the latter. Third, there is a positive association between the importance of each of the two factors and the actual investment reductions, implying that among companies facing higher investment reductions, the importance of macroeconomic and law-related factors is higher.
Highlights
Investment decisions are crucial for the performance of the economy twofold, i.e., with respect to both macro and micro perspectives
Having confirmed it by means of confirmatory factor analysis (Brown 2006), we develop a structural equation model (Bielby and Hauser 1977; Jackson et al 2009; Kline 2011; Saris et al 2009) oriented to establishing the factors responsible for the investment decisions of enterprises according to company size and branch and to investigating the relation between these factors and actual investment reductions at the company level
The largest group suffered from minor investment reductions, but there was a group comprising 11.7% of companies in the whole economy that had to reduce its investment activity by over a half
Summary
Investment decisions are crucial for the performance of the economy twofold, i.e., with respect to both macro and micro perspectives. Economic literature has identified numerous approaches that have been implemented in order to assess what factors influence the investment decisions and to what extent They were based on survey data (Bond et al 2003; Enoma and Mustapha 2010; Gill et al 2012; Karim and Azman-Sainib 2012; Masini and Menichetti 2013; Morgan 1987, 1992; Newell and Seabrook 2006), annual accounts data (Liu and Pang 2009), personal interviews (Ekanem 2005; Newell and Seabrook 2006) and direct observation (Ekanem 2005). The key findings are summarised, limitations of the research are noted, and possibilities for future research are presented in the Discussion section
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