Several theoretical explanations for the presence of soft budget constraints have recently been put forward in the literature. The purpose of this paper is to empirically test these theories on the causes of soft budget constraints. We therefore use a panel data set, consisting of company...

We describe concentration tendencies in individual manufacturing industries in Central and Eastern European countries and identify relevant factors causing these patterns. Using output and employment data for 14 manufacturing industries over the years 1993-2002, we observe an increase in...

In advanced market economies, the use of trade credits is an important way of short-term financing and generally considered as being part of normal business practice.Some transition economies, however, have experienced a rapid accumulation of trade credits which have led to interlocking webs of...