We explore which financial constraints matter the most in the choice of becoming an entrepreneur. We consider a …

We examine the relation between cash holdings, quality of governance and financial constraints. We find that firms with …

investment to cash flow differs at firms facing different levels of internal and external financial constraints. Our results … monotonically with the degree of external financial constraints faced by firms. Combining the internal with the external financial … constraints, we find that the dependence of investment on cash flow is strongest for those externally financially constrained …

in the literature to examine the impact of financial constraints on hiring and firing decisions separately from their …

of inventory investment to the latter as a measure of the strength of the financial constraints faced by firms. We find … suggests that it shields firms from financial constraints. …

obtained in such models may reflect a failure to control properly for fundamentals rather than the presence of financial … constraints. …

’ earnings volatility, the degree of financial constraints that they face, their survival probabilities, and their export market … participation decisions. Our model predicts that more volatile firms are more likely to face financial constraints and to go …