Cover Image

Adverse selection, endogenous borrowing constraints and firm growth

If banks face asymmetric information about loan quality, endogenous borrowing constraints which restrict the size of new firms may emerge in equilibrium. High quality firms reduce financing costs by starting off small and increasing their size over time.
Year of publication:
2010
Authors: Fishman, Arthur ; Krausz, Miriam
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 108.2010, 2, p. 219-221
Publisher: Elsevier
Keywords: Endogenous borrowing constraints Firm growth Asymmetric information
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10008866853
Similar items by person