Acta Universitatis Danubius. Œconomica, Vol 14, No 5 (2018)

Abstract

Abstract: This research is undertaken based on the fact that access to finance is very important for businesses, considering that their growth comes either by investing in productive assets or by finding innovative ways of operating. Since the financial sources and investment opportunities are the starting point of the decision to invest, this research focuses on answering whether a country's financial system contributes to the growth of firm’s investment, having in mind the endogenous economic growth theory based on which the financial system affects economic growth through capital accumulation. To test the impact of external funds in the value of new fixed assets, the linear regression model is used, and the results support the hypothesis that bank sources have a positive impact on the value of new fixed assets. For robustness check the logistic regression is utilized, which tests the dependent variable which is measured through a binary notation, considering the fact if the business in the respective year had purchased or not fixed assets, while as an explanatory variable, among others, are bank sources measured through the fact if business in the same period had or not a credit with any commercial bank. The results show a positive and significant connection between the bank sources and the new fixed assets purchased.