Search Results - subject:": Financial constraints"

The response of firms\u2019 investment and financing to adverse cash flow shocks : the role of bank relationships

Fuss, Catherine; Vermeulen, Philip - Nationale Bank van België/Banque national de Belqique (BNB) - 2006

We test whether firms with a single bank are better shielded from loss of credit and investment cuts in periods of adverse cash flow shocks than firms with multiple bank relationships. Our estimates of the cash flow sensitivity of investment show that both types of firms are equally subject to...

Persistent link: https://www.econbiz.de/10005033316

Financial Frictions, Investment and Tobin's q

Lorenzoni, Guido; Walentin, Karl - Society for Economic Dynamics - SED - 2006

We develop a model of investment with financial constraints and use it to investigate the relation between investment …

Persistent link: https://www.econbiz.de/10005051248

Default rate and price of capital in a costly external finance model

Medina, Juan Pablo - In: Revista de Analisis Economico – Economic Analysis Review 21 (2006) 1, pp. 3-28

Financial frictions have been used to enrich mechanisms transmission in macroeconomics. However, the predictions of real business cycle models of costly external finance imply a procyclical default rate, external premium and relative price of capital which seems at odds with the data. In this...

Persistent link: https://www.econbiz.de/10005698257

Underinvestment vs. Overinvestment: Evidence from Price Reactions to Pension Contributions

Franzoni, Francesco A. - 2006

Mandatory contributions to defined benefit pension plans provide a unique identification strategy to estimate the market's assessment of the value of internal resources controlling for investment opportunities. The drop in prices following these cash outflows is magnified for firms that appear a...

Persistent link: https://www.econbiz.de/10005222540

On the Relationship between the Investment-Cashflow Sensitivity and the Degree of Financing Constraints

Iona, Alfonsina; Leonida, Leone; Ozkan, Aydin - Business School, University of Exeter - 2006

used as evidence of greater financial constraints. …

Persistent link: https://www.econbiz.de/10008852496

Investment decisions and the soft budget constraint: evidence from Hungarian manufacturing firms

Colombo, Emilio; Stanca, Luca - Volkswirtschaftliche Fakultät, … - 2006

This paper investigates the investment behaviour of a large panel of Hungarian firms in the period 1989–99, in order to assess the impact of institutional and regulatory changes on the efficiency of credit allocation. We find that the role of financial factors for investment decisions has...

Persistent link: https://www.econbiz.de/10008472221

The Role of Cash Holdings in Reducing Investment-Cash Flow Sensitivity: Evidence from a Financial Crisis Period in an Emerging Market

Arslan, Ozgur; Florackis, Chrisostomos; Ozkan, Aydin - Department of Economics and Related Studies, University … - 2006

This paper investigates the relationship between financing constraints and investment-cash flow sensitivities by focusing on cash holdings of firms as the basic classification scheme to separate firms into financially constrained and unconstrained categories. The idea is that high cash reserves...

Persistent link: https://www.econbiz.de/10005328559

Financial Constraints on New Firms:Looking for Regional Disparities

Bonnet, Jean; Cieply, Sylvie; Dejardin, Marcus - HAL - 2006

Financial constraints affecting new firms are some of the factors most cited forimpeding entrepreneurial dynamics from … flourishing. This article introduces the problem ofregional patterns of financial constraints. The research is conducted with … financial constraints are not reported. The point is ofimportance as the firm financing conditions are considered. First, an …

Persistent link: https://www.econbiz.de/10008793651

The response of firms' investment and financing to adverse cash flow shocks : the role of bank relationships

Fuss, Catherine; Vermeulen, Philip - 2006

Persistent link: https://www.econbiz.de/10003367995

Cooperation for innovation: evidence from southern European countries

Nunes, Sandra; Carvalho, Luísa; Costa, Teresa - In: International Journal of Innovation and Regional Development 5 (2013) 2, pp. 226-241

innovation, financial constraints on innovation, firm size and sector can contribute to cooperative behaviour in firms. The …

Persistent link: https://www.econbiz.de/10011130147