Author: Mindel van de LaarPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
The Delaying Effect of Financing Constraints on Investment
Author: Mindel van de LaarThe Delaying Effect of Financing Constraints on Investment
Author: Mindel Marete LaarThe impact of financing constraints on investment
Author: John Edward Stuart BrownPublisher:
ISBN:
Category :
Languages : en
Pages : 282
Book Description
Financing constraints and corporate investment
Author: Steven FazzariEssays on Investment and Financing Constraints
Author: Frode JohansenFinancial Development and Financing Constraints
Author: Inessa LovePublisher:
ISBN:
Category :
Languages : en
Pages : 49
Book Description
Microeconomic evidence from 40 countries shows that financial development aids growth by reducing financing constraints that would otherwise restrict efficient firm investment.The relationship between the financial and real sides of the economy has long been a topic of intense interest and debate. Love provides microeconomic evidence that financial development aids growth by reducing financing constraints that would otherwise restrict efficient firm investment.The author estimates a structural model based on the Euler equation for investment using firm-level data from 40 countries. The results show a strong negative relationship between the extent of financial market development and the sensitivity of investment to the availability of internal funds (a proxy for financing constraints).Considering size effects, business cycles, and the legal environment as plausible alternative explanations, the author finds the results to be robust in all cases.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to study the determinants of access to finance. The author may be contacted at [email protected].
Investment under Uncertainty
Author: Robert K. DixitPublisher: Princeton University Press
ISBN: 1400830176
Category : Business & Economics
Languages : en
Pages : 484
Book Description
How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.
Credit Supply and Productivity Growth
Author: Francesco ManaresiPublisher: International Monetary Fund
ISBN: 1498315917
Category : Business & Economics
Languages : en
Pages : 75
Book Description
We study the impact of bank credit on firm productivity. We exploit a matched firm-bank database covering all the credit relationships of Italian corporations, together with a natural experiment, to measure idiosyncratic supply-side shocks to credit availability and to estimate a production model augmented with financial frictions. We find that a contraction in credit supply causes a reduction of firm TFP growth and also harms IT-adoption, innovation, exporting, and adoption of superior management practices, while a credit expansion has limited impact. Quantitatively, the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP.
How important are financing constraints? : the role of finance in the business environment
Author: Meghana AyyagariPublisher: World Bank Publications
ISBN:
Category : Business enterprises
Languages : en
Pages : 59
Book Description
What role does the business environment play in promoting and restraining firm growth? Recent literature points to a number of factors as obstacles to growth. Inefficient functioning of financial markets, inadequate security and enforcement of property rights, poor provision of infrastructure, inefficient regulation and taxation, and broader governance features such as corruption and macroeconomic stability are discussed without any comparative evidence on their ordering. In this paper, the authors use firm level survey data to present evidence on the relative importance of different features of the business environment. They find that although firms report many obstacles to growth, not all the obstacles are equally constraining. Some affect firm growth only indirectly through their influence on other obstacles, or not at all. Using Directed Acyclic Graph methodology as well as regressions, the authors find that only obstacles related to finance, crime, and political instability directly affect the growth rate of firms. Robustness tests further show that the finance result is the most robust of the three. These results have important policy implications for the priority of reform efforts. They show that maintaining political stability, keeping crime under control, and undertaking financial sector reforms to relax financing constraints are likely to be the most effective routes to promote firm growth.
Handbook of the Economics of Finance
Author: G. ConstantinidesPublisher: Elsevier
ISBN: 9780444513632
Category : Business & Economics
Languages : en
Pages : 698
Book Description
Arbitrage, State Prices and Portfolio Theory / Philip h. Dybvig and Stephen a. Ross / - Intertemporal Asset Pricing Theory / Darrell Duffle / - Tests of Multifactor Pricing Models, Volatility Bounds and Portfolio Performance / Wayne E. Ferson / - Consumption-Based Asset Pricing / John y Campbell / - The Equity Premium in Retrospect / Rainish Mehra and Edward c. Prescott / - Anomalies and Market Efficiency / William Schwert / - Are Financial Assets Priced Locally or Globally? / G. Andrew Karolyi and Rene M. Stuli / - Microstructure and Asset Pricing / David Easley and Maureen O'hara / - A Survey of Behavioral Finance / Nicholas Barberis and Richard Thaler / - Derivatives / Robert E. Whaley / - Fixed-Income Pricing / Qiang Dai and Kenneth J. Singleton.