We find the investment-cash-flow-sensitivity (ICFS) decreases with a firm's asymmetric informational imperfection about growth (AI), a variable highly persistent over time. Firms with distinctly initial AI have distinct future investment styles and financing patterns. Higher initial AI predicts...

We identify a firm's growth type by its valuation volatility which proxies for the extent to which asymmetric information arises from growth opportunities rather than from assets-in-place. We show that firm investment style (measured by R&D/[Capex R&D]) is persistent and positively aligned with...

Research Summary: Drawing on entrepreneurial finance theory, we examine the trade-offs among different sources of capital for entrepreneurial firms in emerging economies and their impact on innovation. In emerging economies, one of the unique aspects of firm financing is the presence of informal...