Corporate Investment Slowdowns in the Context of Financialization: Firm-level Evidence from Poland

This paper explores two channels through which financialization affects corporate investments: institutional ownership and shareholder value orientation. Employing the GLMM approach, we analyze firm-level data of companies listed on the Warsaw Stock Exchange and identify a significantly negative relationship between financialization-related factors and fixed investments. Specifically, the results suggest that both institutional investors and profit distribution to shareholders inhibit corporate investments in Poland. Notably, foreign, corporate, and large individual shareholders may also influence investment activity by implementing a shareholder value creation strategy.