Comparing the differences in investment behaviour of public and private firms in The Netherlands

This thesis evaluates differences in investment behaviour between public and private firms in The Netherlands in the period 2004-2010. A sample matched on size of 150 public and 150 private firms form data source Bureau van Dijk is used. The results of this study indicate that public firms invest more but react less to investment opportunities in relation to private firms. The bank crisis has had a big impact on the investment levels of public and private firms. Both show a big downfall in investments. Public firms show an even bigger decline in investment levels and investment opportunities than private firms. This suggest that pubic firms are more disadvantaged by the bank crisis.