A STUDY OF THE IMPACT OF INVESTMENTS IN ECONOMIC VALUE OF THE FIRM IN INTERNATIONAL COMPETITION

Investments in plants, innovation, R&D and equipment are key factors for international companies to have a bigger market share and thus a rising economic value. These key factors are basically part of the strategic decision to maintain the competitive position at global level. The paper highlights the present economic situation in Germany and shows the medium term investment developments. The authors used the public reports of the German companies to have a valid database. The data is analyzed by economic value such as turnaround, Tobin's Q ratio, EBIT and investments. From the overall database publicly traded German companies were selected for the timeframe 2008 to 2014. The conclusion of the study is that the analyzed companies used a mixture of investments clearly showing a correlation between the above mentioned key factors and the increase in economic value. However there were also different cases where the outliers were very strong.