Financial frictions and the K/L ratio in UK manufacturing

Spaliara, M.E. (2011) Financial frictions and the K/L ratio in UK manufacturing. Economics Letters, 112(1), pp. 23-25. (doi: 10.1016/j.econlet.2011.03.015)




We investigate whether technological differences of UK manufacturing industries influence the response of firms’ capital–labour (K/L) ratio to changes in financial indicators under financial frictions. The results reveal that technological factors along with internal funds significantly affect the K/L ratio for financially constrained firms.

Item Type:Articles
Additional Information:NOTE: This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, Vol. 112, Issue 1, July 2011, DOI: 10.1016/j.econlet.2011.03.015
Glasgow Author(s) Enlighten ID:Spaliara, Professor Marina Eliza
Authors: Spaliara, M.E.
Subjects:H Social Sciences > HG Finance
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Economics Letters
Publisher:Elsevier BV
ISSN (Online):1873-7374
Published Online:03 April 2011
Copyright Holders:Copyright © 2011 Elsevier B.V.
First Published:First published in Economics Letters 112 (1) : 23-25
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher.

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