The effects of regional capital subsidies on firm performance: an empirical study
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 1 March 2004
Abstract
Capital subsidization is a widespread instrument of regional and industrial policy in Europe. A number of recent works have examined the influence of capital subsidization on the total factor productivity of recipient sectors and firms, and have provided strong evidence of neutral or even negative effects. The present study examines the effect of capital subsidization on four dimensions of the financial performance of firms, that is efficiency, profitability, capital structure, and growth, and provides evidence that capital subsidization affects solely firm growth.
Keywords
Citation
Tzelepis, D. and Skuras, D. (2004), "The effects of regional capital subsidies on firm performance: an empirical study", Journal of Small Business and Enterprise Development, Vol. 11 No. 1, pp. 121-129. https://doi.org/10.1108/14626000410519155
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited