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We analyze the link between firms’ access to finance and their decisions to enter and exit the export market. We employ … contrast, there is no relationship between the decision of firms to enter or exit export markets and their access to finance …. This may suggest that internal finance plays a greater role in Eastern European and CIS countries than in developed …
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When external capital markets are stressed they may not reallocate resources between firms. We show that resource allocation within firms' internal capital markets provides an important force countervailing financial market dislocation. Using data on U.S. conglomerates we empirically verify that...
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Financial institutions have both investors and customers. Investors, such as those who invest in stocks and bonds or private/public-sector guarantors of institutions, expect an appropriate risk-adjusted return in exchange for the financing and risk-bearing that they provide. Customers of a...
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Entrepreneurs must experiment to learn how good they are at a new activity. What happens when the experimentation is financed by a lender? Under common scenarios, i.e., when there is the opportunity to learn by "starting small" or when "no-compete" clauses cannot be enforced ex-post, we show...
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