THE RESPONSE OF FIRM´ INVESTMENT AND FINANCING TO ADVERSE CASH FLOW SHOCKS - THE ROLE OF BANK RELATIONSHIPS

We test whether firms with a single bank are better shielded from loss of credit and investment cutsin periods of adverse cash flow shocks than firms with multiple bank relationships. Our estimatesof the cash flow sensitivity of investment show that both types of firms are equally subject tofinancing constraints that bind only in the event of adverse cash flow shocks...

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Year of publication:	2006-06-01
Authors:	Fuss, Catherine ; Vermeulen, Philip
Institutions:	European Central Bank
Subject:	Finanzierung \| finance \| Cashflow \| Unternehmen

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Extent:	83968 bytes 37 p. application/pdf
Series:	ECB - European Central Bank - Working Papers WORKING PAPER SERIES ; 658 (2006)
Type of publication:	Book / Working Paper
Language:	English
Classification:	D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; Corporate finance and investment policy. General ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005861052