Search Results - subject:"Liquidity constraints"

Machine Learning for Zombie Hunting. Firms' Failures and Financial Constraints

Bargagli Stoffi, Falco - 2020

In this contribution, we exploit machine learning techniques to predict the risk of failure of firms. Then, we propose an empirical definition of zombies as firms that persist in a status of high risk, beyond the highest decile, after which we observe that the chances to transit to lower risk...

Persistent link: https://www.econbiz.de/10012835532

Information and Credit Constraints : Evidence from Horticultural Farmers in Rwanda

Abouaziza, Mohamed - 2020

Business plan competitions can be a crucial factor to boost entrepreneurship through mitigating information and credit constraints, but the existing literature does not address that their impacts could go beyond intended beneficiaries. In this paper, I cover this aspect by studying the overall...

Persistent link: https://www.econbiz.de/10012836093

Liquidity Constraints, Home Equity and Residential Mortgage Losses

Do, Hung Xuan - 2020

This paper analyses how borrower liquidity constraints and home equity relate to the realized loss given default (LGD … liquidity constraints and positive equity are explaining cure, while negative equity explains non-zero loss. However, a … relationship between borrower liquidity constraints and the non-zero LGD is not economically meaningful. Our findings support to …

Persistent link: https://www.econbiz.de/10012854717

Do Institutional Investors Unbind Firm Financial Constraints? Evidence from Emerging Markets

Alvarez, Roberto - 2020

Using firm-level information for 11 large emerging economies for the 2003-2014 period, this article analyses the impact of firm investment ratio depending on the presence of institutional ownership and the effects of institutional investor heterogeneity on firm financial constraints. Results...

Persistent link: https://www.econbiz.de/10012855111

Financial Constraints and Future Tax Outcome Volatility

Akamah, Herita T. - 2020

We investigate whether variation in the volatility of tax outcomes across firms is associated with the extent of financial constraints. We document a positive association between current-period financial constraints and the volatility of cash effective tax rates in subsequent periods. We find...

Persistent link: https://www.econbiz.de/10012855373

Trade Credit During Financial Crisis : Do Market Power and Financial Constraints Matter?

Goncalves, Adalto - 2020

This paper investigates whether market power affects trade credit decisions. We explore several financial crises in Argentina, Brazil, Mexico and the US that work as exogenous shocks to the supply of short and long term financing for nonfinancial firms. We find that firms with high market power...

Persistent link: https://www.econbiz.de/10012855754

Houses as ATMs? Mortgage Refinancing and Macroeconomic Uncertainty

Chen, Hui - 2020

Mortgage refinancing activity associated with extraction of home equity contains a strongly counter-cyclical component consistent with household demand for liquidity. We estimate a structural model of liquidity management featuring counter-cyclical idiosyncratic labor income uncertainty, both...

Persistent link: https://www.econbiz.de/10012857299

The Impact of Financial Constraints on Tradable and Non-Tradable R&D Investments in Portugal

Magalhães, Manuela - 2020

We develop a directed technical change model with two sectors, tradable and non-tradable, and dynamic firms' decisions to invest in R&D in the presence of financial constraints. The model establishes a linkage between R&D decisions, product and process innovations, future productivity, profits,...

Persistent link: https://www.econbiz.de/10012837750

Financial Constraints and Likelihood of Product Innovation : Firm-level Evidence from China

Sun, Sizhong - 2020

This paper investigates how financial constraints affect a firm's decision on whether to conduct product innovation. Theoretically, we show that a firm's optimal decision on product innovation is a function of its past decision, financial constraints and a set of control variables. Through...

Persistent link: https://www.econbiz.de/10012838584

Liquidity Constraints and Healthcare Expenditure

Yildiz, Sumeyye - 2020

evaluates the effect of binding liquidity constraints on healthcare spending decisions. Further, the paper compares the effect … of liquidity constraints on healthcare expenditure with the effect on the non-health consumption in particular on the …. Theoretically, I show that households reduce their healthcare expenditure due to the binding liquidity constraints in the current …

Persistent link: https://www.econbiz.de/10012839969