Search Results - subject:"Liquidity constraints"

Liquidity Constraints and the Value of Insurance

Ericson, Keith M. Marzilli - 2018

wealth models. We develop a consumption-utility model that shows how liquidity constraints and borrowing costs impact the … value of insurance. Liquidity constraints generate high insurance demand when premiums are due smoothly, sometimes leading … liquidity constraints. We show empirical insurance analysis using the standard model can generate misleading counterfactuals and …

Persistent link: https://www.econbiz.de/10012480646

Investment-Cash Flow Sensitivity and Financial Constraints : Evidence from Unquoted European SMEs

Mulier, Klaas - 2018

We contribute to the financial constraints literature and the investment-cash flow sensitivity debate by defining a new and simple index of firm level financial constraints for unquoted European SMEs. Firms that are constrained according to our index pay higher interest rates on their debt. An...

Persistent link: https://www.econbiz.de/10012925010

Dynamic Mechanism Design with Budget Constrained Buyers Under Limited Commitment

Balseiro, Santiago - 2018

We study the dynamic mechanism design problem of a seller that repeatedly auctions independent items over a discrete time horizon to buyers that face a cumulative budget constraint. A driving motivation behind our model is the emergence of real-time bidding markets for online display advertising...

Persistent link: https://www.econbiz.de/10012936561

Financial distress, refinancing, and debt structure

Dudley, Evan - 2018

We examine changes in debt structure when firms experience financial distress. At these points in time, firms refinance and undergo substantial changes in priority structure. Specifically, we find that firms di- versify their priority structure relative to its pre-distress composition. We show,...

Persistent link: https://www.econbiz.de/10012936867

Real Effects of the Sovereign Debt Crisis in Europe : Evidence from Syndicated Loans

Acharya, Viral V. - 2018

We explore the impact of the credit crunch that followed the European debt crisis on the corporate policies of European firms. We show that banks' exposures to impaired sovereign debt and the risk-shifting behavior of undercapitalized banks contributed significantly to the severity of the...

Persistent link: https://www.econbiz.de/10012937243

Rivals’ Competitive Activities, Capital Constraints, and Firm Growth

Bergbrant, Mikael C. - 2018

We examine the impact of rivals' competitive activities on firms' quantity-of-capital constraints in 60 countries. Prior work shows that competition increases the costs of debt and equity, which reduce the economic profit from investment. Capital constraints, however, may prevent firms from...

Persistent link: https://www.econbiz.de/10012937337

Credit Relationships in the Great Trade Collapse. Micro Evidence From Europe

Ferri, Giovanni - 2018

Using a rich sample of small and medium-sized European firms, we study how banks' lending technologies affected firms' export activities during the 2009 great trade collapse. We find that bank-firm relationships mitigated the contraction of firms' export by easing banks' access to inside, "soft"...

Persistent link: https://www.econbiz.de/10012937618

Labor Supply Responses to Adverse Shocks Under Credit Constraints : Evidence from Bukidnon, Philippines

Malapit, Hazel Jean - 2018

The ability of households to insure consumption from adverse shocks is an important aspect of vulnerability to poverty. How is consumption insurance achieved in a low-income setting where formal credit and insurance markets have been observed to be imperfect or missing? Using 2003 data from the...

Persistent link: https://www.econbiz.de/10012706550

Productivity, exporting and financial constraints of Chinese SMEs

Van Biesebroeck, Johannes - 2018

Persistent link: https://www.econbiz.de/10012201657

Predictability of aggregate consumption in Brazil : habits, non-separability between consumption and leisure, or credit constraint?

Barros Júnior, Fernando Antônio de; Delalibera, Bruno … - In: Brazilian review of econometrics : BRE ; the review of … 38 (2018) 1, pp. 75-95

Persistent link: https://www.econbiz.de/10012129035