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Different measures, different trends: Contradictions in macro and micro level growth measures

Juhász, Péter; Váradi, Kata; Száz, János; … - In: Journal of Contemporary Economic and Business Issues 4 (2017) 1, pp. 21-39

measurement unit determines what distortions we will face, and thus, using different measures we may end up identifying completely … their operational, investment or financing strategy or when structural changes happen in the economy. This may end in …

Persistent link: https://www.econbiz.de/10011984740

Financial Constraints of Private SMEs in Germany : Measurement and Consequences on Corporate Policies

Schauer (neé Klepsch), Catharina - 2016

We examine a large and unique panel containing survey and financial statement data on small and medium sized private enterprises (SMEs) in Germany from 1991 to 2011. From the survey data, we derive a financial constraints measure based on managers' self-perception. We find that our measure...

Persistent link: https://www.econbiz.de/10013007687

Using 10-K Text to Gauge Financial Constraints

Bodnaruk, Andriy - 2015

Measuring the extent to which a firm is financially constrained is critical in assessing capital structure. Extant measures of financial constraints focus on macro firm characteristics such as age and size – variables highly correlated with other firm attributes. We parse 10-K disclosures...

Persistent link: https://www.econbiz.de/10013035014

A New Measure of Financial Constraints Applicable to Private and Public Firms

Schauer (neé Klepsch), Catharina - 2019

We study managers' self-assessment of their firm's financial constraint status to assess the validity of commonly used indicators of financial constraints. As categorizations based on common financial constraints measures lead to high misclassifications, we derive a new measure of financial...

Persistent link: https://www.econbiz.de/10012904067

Small Growth and Distress Returns : Two Sides of the Same Coin?

Bhamra, Harjoat Singh - 2016

We propose a unified explanation for two seemingly disparate empirical findings: the negative abnormal returns of distressed stocks, and of small growth stocks. Based on a counterintuitive result relating option prices to jump risk (Merton 76), we show via an investment valuation model that...

Persistent link: https://www.econbiz.de/10013007036

Small Growth and Distress Returns : Two Sides of the Same Coin?

Bhamra, Harjoat Singh - 2016

We propose a unified explanation for two seemingly disparate empirical findings: the negative abnormal returns of distressed stocks, and of small growth stocks. Based on a counterintuitive result relating option prices to jump risk (Merton (1976)), we show via an investment valuation model that...

Persistent link: https://www.econbiz.de/10013007449

Do Market Imperfections Give Rise to Financial Constraints? A Growth Type Explanation for the Sensitivity of Investment to Cash Flow

Wu, Xueping - 2012

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...

Persistent link: https://www.econbiz.de/10013101562

Investment vs debt trade-offs in the post-COVID-19 European economy

Maurin, Laurent; Pál, Rozália - 2020

faced by corporates between investment and leverage. It also suggests that, should the estimated gap in net revenues …

Persistent link: https://www.econbiz.de/10012317551

Investment vs debt trade-offs in the post-COVID-19 European economy

Maurin, Laurent; Pál, Rozália - 2020

faced by corporates between investment and leverage. It also suggests that, should the estimated gap in net revenues …

Persistent link: https://www.econbiz.de/10012312927

Leveraging success : the hidden peak in debt and firm performance

Dsouza, Suzan; Kathavarayan, Krishnamoorthy; Mathias, … - In: Econometrics : open access journal 13 (2025) 2, pp. 1-22

, focusing on the potential non-linear, inverse U-shaped effect of leverage on profitability. Drawing on data from 1548 firm …. The findings indicate that moderate levels of debt enhance profitability, but excessive leverage leads to diminishing … leverage without adverse effects, while smaller firms benefit from maintaining lower debt levels. The study concludes that …

Persistent link: https://www.econbiz.de/10015437104