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Israel: Selected Issues
Author:
International Monetary Fund
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2006: Issue 121
Language:
English
Publication Date:
23 Mar 2006
DOI:
https://doi.org/10.5089/9781451819601.002
ISBN:
9781451819601
ISSN:
1934-7685
Pages:
113
Keywords:
ISCR; CR; bank; GDP; provident fund; bank-customer relations area; bank management; bank policy; deficit target; Inflation; Mutual funds; Financial statements; Insurance companies; Global; Europe
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This Selected Issues paper analyzes the empirical relationship between corporate leverage—and other indicators of financial health—and investment in Israel, using dynamic panel data techniques. The results suggest that weak balance sheets may well have contributed to the investment decline of recent years. The impact of financial variables on investment is more pronounced for firms under financial pressure. However, there is little evidence that weak balance sheets’ impact on corporate investment increases during real downturns or following an equity market bust.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund