Discussion Paper
No. 2013-44 | August 22, 2013
Piotr Bialowolski and Dorota Weziak-Bialowolska
External Factors Affecting Investment Decisions of Companies


In this paper we attempt to investigate the importance of certain external factors on the investment decision among Polish companies. With the use of data from the tailored made Survey on Receivables we examine factors influencing investment decisions of companies in Poland, assess the relation between the branch and company size and importance of the factors and finally we determine the relative influence of these factors on the actual investment reductions. The results showed that first, although the problem of payment delays is the most important single reason determining the investment decisions of Polish companies, its importance decreases when analyzed simultaneously with other reasons. Second, there are two driving forces determining the investment decisions of Polish companies, namely macroeconomic factors and law-related factors with the relative importance of the former lower than the latter. Third, there is a positive association between the importance attached to factors influencing investment decisions associated with either macroeconomic or legal environment and the investment reductions, meaning that companies facing higher investment reductions are also more prone to notice and value the factors influencing these decisions. 

Data Set

JEL Classification:

D92, G11, G31


Cite As

[Please cite the corresponding journal article] Piotr Bialowolski and Dorota Weziak-Bialowolska (2013). External Factors Affecting Investment Decisions of Companies. Economics Discussion Papers, No 2013-44, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2013-44

Comments and Questions

Mariusz Prochniak - Invited Reader Comment 1
September 17, 2013 - 10:59
See attached file

Anonymous - Reply to prof. Prochniak
January 25, 2014 - 11:01
A reply to comments made by prof. Prochniak is attached in the pdf file below

Anonymous - Referee Report 1
January 16, 2014 - 10:42
The research paper is good and should be accepted for publication. 1. Originality: Does the paper contain new and significant information adequate to justify publication?Comments: Yes. 2. Relationship to Literature: Does the paper demonstrate an adequate understanding of the relevant literature in the field and cite an appropriate range of literature sources? Is any significant work ignored?Comments: Yes. 3. Methodology: Is the paper's argument built on an appropriate base of theory, concepts, or other ideas? Has the research or equivalent intellectual work on which the paper is based been well designed? Are the methods employed appropriate?Comments: Yes, methodology is appropriate. 4. Results: Are results presented clearly and analyzed appropriately? Do the conclusions adequately tie together the other elements of the paper?Comments: Yes. 5. Practicality and/or Research implications: Does the paper identify clearly any implications for practice and/or further research? Are these implications consistent with the findings and conclusions of the paper?Comments: Yes. 6. Quality of Communication: Does the paper clearly express its case, measured against the technical language of the field and the expected knowledge of the journal's readership? Has attention been paid to the clarity of expression and readability, such as sentence structure, jargon use, acronyms, etc.Comments: This is a good quality paper but I would suggest to double check it one more time to see if there are any mistakes. Recommendation: The research paper should be accepted for publication

Piotr Bialowolski - Reply to Anonymous Revier
January 25, 2014 - 11:03
Authors would like to thank to the Anonymous Reviewer for the positive assessment of the paper.

Piotr Bialowolski - new version of the manuscript
February 10, 2014 - 08:59
This is a revised manuscript.