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Corporate Investment in Bank-Dependent Companies in Crisis Time

Elżbieta Bukalska
Elżbieta Bukalska
 and 
Ilona Skibińska-Fabrowska
Ilona Skibińska-Fabrowska
   | Jan 20, 2023
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Published Online: Jan 20, 2023
Page range: 1 - 22
DOI: https://doi.org/10.2478/ceej-2023-0001
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© 2023 Elżbieta Bukalska et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1- 4

The gross value added, employee compensation and gross fixed formation annual growth rates over the 2000–2020 for Germany, Poland, Czechia and Slovakia (1999=100)Source: Eurostat database (https://ec.europa.eu/eurostat/data/database)
The gross value added, employee compensation and gross fixed formation annual growth rates over the 2000–2020 for Germany, Poland, Czechia and Slovakia (1999=100)Source: Eurostat database (https://ec.europa.eu/eurostat/data/database)

Descriptive Statistics for Dependent, Independent, and Control Variables With Wilcoxon Test Results

Classes of periods 1preGFC 2GFC 3PreCOV 4COV Wilcoxon test results1 v. 2 Wilcoxon test results1 v. 3 Wilcoxon test results3 v. 4 Wilcoxon test results2 v. 4
Dependent Variables
Investment ratio
Mean 7.3 4.3 3.5 3.1 −7.887*** −9.293*** −3.582*** −4.277***
Median 6.8 3.3 2.7 2.0
Min 0.1 0.0 0.0 0.0
Max 24.5 17.4 10.8 11.9
Sd 4.9 3.8 2.8 2.9
Independent Variables
Debt ratio
Mean 44.3 40.7 47.1 47.0 −2.996** −2.303* −0.609 −3.410**
Median 46.5 40.0 46.3 45.8
Min 3.5 1.4 2.8 0.5
Max 82.1 86.2 96.0 97.3
Sd 16.7 17.5 18.4 19.5
Bank debt ratio
Mean 11.1 10.5 12.3 11.2 −0.196 −2.309* −2.868** −0.591
Median 6.2 5.3 10.6 7.7
Min 0.0 0.0 0.0 0.0
Max 42.5 40.17 37.6 50.0
Sd 12.1 11.9 10.6 11.4
Change in bank debt ratio
Mean 7.6 4.1 2.7 2.8 −4.289*** −4.501*** −0.744 −0.785
Median 0.4 0.0 0.0 0.0
Min 0.0 0.0 0.0 0.0
Max 97.3 97.3 60.3 134.4
Sd 14.1 11.1 6.9 9.9
Control Variables
Profitability
Mean 6.1 1.7 1.3 −7.9 −5.083*** −0.959 −5.797*** −0.016
Median 5.9 3.5 3.0 3.3
Sales growth
Mean 29.5 4.1 10.1 1.5 −7.399*** −5.940*** −2.714** −0.533
Median 14.6 −2.4 2.9 −1.0
Tangibility
Mean 44.6 48.0 51.9 51.8 −5.143*** −5.481*** −1.310 −1.821*
Median 44.0 50.3 50.8 50.8
Cash ratio
Mean 10.7 9.8 7.7 9.7 −1.731* −0.040 −4.240*** −5.084***
Median 7.5 6.8 5.2 6.1
Dividend ratio
Mean 1.9 1.7 1.7 1.2 −0.501 −0.945 −1.402 −5.144***
Median 0.1 0.0 0.3 0.0
Total assets (Millions of PLN)
Mean 3,200 3,800 5,604 5,818 −5.665*** −3.539*** −5.454*** −8.461***

Results of GMM Analysis With Investment Ratio as Dependent Variable

Dependent variable Independent variables Investment Ratio Investment Ratio Investment Ratio
Debt ratio t-1 −0.377** (0.133) X X
Bank debt ratio t-1 X −1.299* (0.516) X
Change in bank debt ratio t-1 x X 0.884*** (0.218)
Investment ratio t-1 0.827*** (0.153) −0.554 (1.896) 0.208 (0.229)
Size t-1 −0.070* (0.032) 0.217 (2.998) −0.025 (0.027)
Sales growth t-1 0.000 (0.001) 0.000 (0.001) −0.001 (0.001)
Tangibility t-1 -0.888 (0.662) 0.052 (1.331) −0.176 (0.239)
Profitability t-1 0.466** (0.187) 0.254 (0.499) 0.137 (0.419)
Dividend ratio t-1 2.130 (1.741) 1.176 (2.361) −1.243 (2.139)
Cash ratio t-1 1.154** (0.456) −0.835 (7.513) 0.471 (0.526)
PreGFC −0.038 (0.035) 0.012 (0.014) −0.072** (0.021)
GFC 0.145** (0.058) 0.059 (0.042) 0.193*** (0.033)
PreCOV −0.027 (0.043) −0.047* (0.029) 0.237** (0.087)
COV 0.009 (0.034) −0.005 (0.025) 0.205** (0.067)
PreGFC*IND −0.035* (0.020) 0.088 (0.071) −1.657* (0.781)
GFC*IND 0.111* (0.060) 0.298 * (0.141) 6.600 * (3.062)
PreCOV*IND 0.035 (0.032) −0.100 (0.082) 6.021* (2.849)
COV*IND 0.013 (0.011) 0.039 (0.091) 2.041 (1.290)
No. of companies 232 232 232
No. of periods 4 4 4
Total no. of observations 928 928 928

Classes of Periods

Class Years Characteristic Name
1 2007–2008 Period before global financial crisis PreGFC
2 2009 Global financial crisis period GFC
3 2018–2019 Period before COVID-19 crisis PreCOV
4 2020 COVID-19 crisis period COV

Correlation Coefficients With Investment Ratio

Whole Period PreGFC GFC PreCOV COV
Debt ratio −0.070** −0.127** 0.041 −0.127** −0.088
Bank debt ratio −0.051* −0.070* 0.051 −0.031 −0.058
Change in Bank Debt Ratio 0.091** 0.022 0.204 ** −0.120* −0.001
N 928 232 232 232 232

Definition of the Vvariables Included in the Research

Variables Formula Expected sign
Dependent Variable
Corporate investment Investment ratio CAPEX to total assets (%) NA
Independent Variables
Company indebtness Debt ratio Total liabilities (both long and short-term) to total assets (%) −
Bank dependence Bank debt ratio Bank total liabilities (both long and short-term) to total assets (%) −
Bank dependence Change in bank debt ratio Change in bank total liabilities (both long and short-term) to total assets (%) +
Control Variables
Size Natural logarithm of total assets −/+
Sales growth Sales revenue change to sales revenue (%) +
Tangibility Fixed assets to total assets (%) +
Profitability Net profit to total assets (%) +
Dividend ratio Dividend payment to total assets (%) −
Cash ratio Cash holdings to total assets (%) −/+
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