Search Results - subject:"Financing constraints"

Real versus financial frictions to capital investment

Bayraktar, Nihal; Sakellaris, Plutarchos; Vermeulen, Philip - European Central Bank - 2005

We formulate and estimate a structural model of firm investment behavior that specifies the exact channel through which financial frictions bite. The model also allows for the existence of both convex and non-convex costs to adjusting capital. Essentially, we move beyond simply testing and...

Persistent link: https://www.econbiz.de/10005530884

Is Investment-Cash flow Sensitivity a Good Measure of Financing Constraints? New Evidence from Indian Business Group Firms

George, R.; Kabir, M.R.; Qian, J. - Tilburg University, Center for Economic Research - 2005

Several studies use the investment - cash flow sensitivity as a measure of financing constraints while some others … subject to less financing constraints relative to independent firms.Our results show strong investment - cash flow …

Persistent link: https://www.econbiz.de/10011091092

Firms' Investment under Financial and Infrastructure Constraints: Evidence from In-House Generation in Sub-Saharan Africa

Steinbuks, Jevgenijs - In: The B.E. Journal of Economic Analysis & Policy 12 (2012) 1

Abstract While it is well known that financing and infrastructure constraints negatively affect economic development, the correlations between these constraints have been underexplored in the economics literature. This paper focuses on the implications of financing and infrastructure constraints...

Persistent link: https://www.econbiz.de/10014586893

The firm-level credit multiplier

Campello, Murillo; Hackbarth, Dirk - In: Journal of Financial Intermediation 21 (2012) 3, pp. 446-472

We study the effect of asset tangibility on corporate financing and investment decisions. Financially constrained firms benefit the most from investing in tangible assets because those assets help relax constraints, allowing for further investment. Using a dynamic model, we characterize this...

Persistent link: https://www.econbiz.de/10011051610

Innovative Capability and Financing Constraints for Innovation: More Money, More Innovation?

Hottenrott, Hanna; Peters, Bettina - In: The Review of Economics and Statistics 94 (2012) 4, pp. 1126-1142

This study presents a novel empirical approach to identify financing constraints for innovation based on the concept of …

Persistent link: https://www.econbiz.de/10011009939

Why are firms unlevered?

Devos, Erik; Dhillon, Upinder; Jagannathan, Murali; … - In: Journal of Corporate Finance 18 (2012) 3, pp. 664-682

In this paper, we examine why firms have no debt in their capital structure. We reject the hypothesis that zero-leverage policies are driven by entrenched managers attempting to avoid the disciplinary pressures of debt. These firms do not have weaker internal or external governance mechanisms....

Persistent link: https://www.econbiz.de/10010574258

Chinese firms’ political connection, ownership, and financing constraints

Chan, Kenneth S.; Dang, Vinh Q.T.; Yan, Isabel K.M. - In: Economics Letters 115 (2012) 2, pp. 164-167

We empirically examine some listed Chinese firms’ political connection, ownership, and financing constraints …. Politically-connected firms display no financing constraints whereas firms without connection experience significant constraints …

Persistent link: https://www.econbiz.de/10010576422

Financial reform and financing constraints: Some evidence from listed Chinese firms

Chan, Kenneth S.; Dang, Vinh Q.T.; Yan, Isabel K.M. - In: China Economic Review 23 (2012) 2, pp. 482-497

This paper examines the impact of recent financial reforms in China on the financing constraints and investment of …' financing constraints in an Euler-equation investment model. Based on panel data of listed firms for 1996–2007, we find that … these firms' investment decisions to stricter market-based discipline and therefore raised their financing constraints. No …

Persistent link: https://www.econbiz.de/10010578011

Do financing constraints matter for R&D?

Brown, James R.; Martinsson, Gustav; Petersen, Bruce C. - In: European Economic Review 56 (2012) 8, pp. 1512-1529

investments, yet existing evidence on whether financing constraints limit R&D is decidedly mixed, particularly in the studies of … external equity finance. Our study provides a framework for evaluating financing constraints when firms rely extensively on … controlling for this smoothing behavior is critical for uncovering the full effect of financing constraints. Our findings also …

Persistent link: https://www.econbiz.de/10010588198

Investment, irreversibility, and financing constraints: Evidence from a panel of transition economies

Guariglia, Alessandra; Tsoukalas, John; Tsoukas, Serafeim - In: Economics Letters 117 (2012) 3, pp. 582-584

Focusing on a panel of unlisted firms from transition economies, we observe that only firms facing low irreversibility exhibit high and significant investment-cash flow sensitivities. Our findings provide a new explanation for why some financially constrained firms may exhibit low sensitivities.

Persistent link: https://www.econbiz.de/10010594188