We estimate firms' cash flow sensitivity of cash to empirically test how the financial system's structure and activity level influence their financial constraints. For this purpose we merge Almeida, Campello and Weisbach (2004), a pathbreaking new design for evaluating a firm's financial...

We examine why firms change their main bank and how this affects loans, interest payments and firm performance after switching. Using unique firm-bank matched Ukrainian data, the treatment effect estimates suggest that more transparent and riskier companies are more likely to switch their main...

In this paper we present latest facts about the R&D activities of German multinational companies abroad and R&D activities of foreign companies in Germany. These results confirm that Germany is still an attractive location for R&D activites of multinational companies in many technological...

How do new and foreign firms achieve superior productivity? Do they conduct more and better R&D? Or do they distinguish themselves through computerization and organizational capital? We investigate the determinants of and returns to several types of investment, using a panel of over 40,000...

The paper studies the dynamics of exporting activity at the extensive and intensive margins and its impact on the firm-level total factor productivity growth for Ukraine manufacturing and service sectors in 2000-2005. The estimation is performed for different types of export markets...

The paper empirically assesses microeconomic exporting-productivity nexus using the data for Ukrainian manufacturing firms for the years 2000-2005. The results of the estimation show that firms with higher total factor productivity (TFP) levels in the period prior to entry are much more likely...

This study uses a switching regression framework with known sample separation to analyze the effects of corporate income taxation on investment in case of binding and non-binding financial constraints. By employing two different sample splitting criteria, payout behavior and the ratio of...

In this paper we investigate whether small-scale businesses face financial constraints that affect their survival. We develop a model of moral hazard in which financial constraints arise endogenously. The model predicts that higher private assets relax financial constraints and have a positive...