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20.11.2015 - Studies

Weak investment despite low interest rates - Calculatory capital costs a hindrance?

by

The investment activity of DAX 30 companies has been steadily declining since the turn of the millennium. Since the year 2000, the investment expenditures of the companies have shrunk from 133 billion to € 97 billion in 2014.

This comes as a surprise, as the ECB's zero interest rate policy currently allows companies to borrow almost free of interest, which should have a positive effect on investment activity. However, it shows that the cost of capital reported in the annual reports has hardly fallen.

Please note: This study is available in German only.

Download study as PDF (Reading time 20 min)

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