This paper analyses the impact that firms' financial position has on investment decisions using panel data from a large sample of non-financial corporations (around 120,000 firms) in six euro area countries (Belgium, Germany, France, Italy, the Netherlands and Spain). The results indicate that...

Using a large sample of Spanish companies, this paper investigates the impact that firms' financial health has on their investment and employment decisions. The results indicate that firms' financial position is important for explaining firms' capital expenditures and their employment levels,...