Search Results - subject:"Liquidity constraints"

Why Do Financially Constrained Suppliers Provide Trade Credit in China? An Extended Redistribution View

Tian, Gary Gang - 2017

Extending the existing redistribution theory to Chinese manufacturing firms, we find that the provision of trade credit through investing in accounts receivable is significantly correlated with the amount of funds raised through providers' equity finance, suggesting that firms not only...

Persistent link: https://www.econbiz.de/10012964225

High School Track Choice and Liquidity Constraints : Evidence from Urban Mexico

Bobba, Matteo - 2017

oriented education modalities. We find support for the hypothesis that the transfer relaxes the liquidity constraints …

Persistent link: https://www.econbiz.de/10012964497

Pledgeability, Industry Liquidity, and Financing Cycles

Diamond, Douglas W. - 2017

Why do firms choose high debt when they anticipate high valuations, and underperform subsequently? We propose a theory of financing cycles where the importance of creditors' control rights over cash flows (“pledgeability”) varies with industry liquidity. The market allows firms take on more...

Persistent link: https://www.econbiz.de/10012965425

Inequality in Human Capital and Endogenous Credit Constraints

Hai, Rong - 2017

This paper investigates the determinants of inequality in human capital with an emphasis on the role of the credit constraints. We develop and estimate a model in which individuals face uninsured human capital risks and invest in education, acquire work experience, accumulate assets and smooth...

Persistent link: https://www.econbiz.de/10012966600

Financial Constraints and Girls'Secondary Education : Evidence from School Fee Elimination in the Gambia

Blimpo, Moussa P. - 2017

This study analyzes the impact of large-scale fee elimination for secondary school girls in The Gambia on the quantity, composition, and achievement of students. The gradual rollout of the program across geographic regions provides identifying variation in the policy. The program increased the...

Persistent link: https://www.econbiz.de/10012967121

Do Firms Mitigate or Magnify Capital Misallocation? Evidence from Plant-Level Data

Kehrig, Matthias - 2017

Almost two thirds of the cross-plant dispersion in marginal revenue products of capital occurs across plants within the same firm rather than between firms. Even though firms allocate investment very differently across their plants, they do not equalize marginal revenue products across their...

Persistent link: https://www.econbiz.de/10012970041

The Impact of Financial Constraints on Accounting Conservatism

Demonier, Gladyson - 2017

Objective – This study investigates the effects of financial constraints on the conservatism practices of Brazilian firms.Design/methodology/approach – A sample totaling 1,086 observations of Brazilian publicly traded companies listed on BM&FBovespa was developed from 2000 to 2012. In the...

Persistent link: https://www.econbiz.de/10012970095

High School Track Choice and Financial Constraints : Evidence from Urban Mexico

Avitabile, Ciro - 2017

Parents and students from different socioeconomic backgrounds value differently school characteristics, but the reasons behind this preference heterogeneity are not well understood. In the context of the centralized school assignment system in Mexico City, this study analyzes how a large...

Persistent link: https://www.econbiz.de/10012970940

Soft Liquidity Constraints and Consumption : Evidence from Macro Prudential Policy in Turkey

Agarwal, Sumit - 2017

policy on consumption and debt repayment behavior. The complex policy imposes two types of soft liquidity constraints for … theory of liquidity constraints and consumption (Carroll and Kimball 2005). Our results show that a well-designed credit card … policy will likely impose significant liquidity constraints instigating change in consumers' spending and debt payment …

Persistent link: https://www.econbiz.de/10012972103

Financial Constraints, Working Capital and the Dynamic Behavior of the Firm

Chan, Rosanna C. - 2017

Financial constraints are widespread in developing countries, where even short-term credit is limited. Finance held by firms as working capital is a substantial proportion of sales revenue, yet the role of working capital is largely neglected by existing models of financial constraints. This...

Persistent link: https://www.econbiz.de/10012973444