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The U-shaped Investment Curve: Theory and Evidence
Cleary, Sean; Povel, Paul; Raith, Michael - EconWPA - 2003
This paper examines how the investment of financially constrained firms varies with their level of internal funds. We … develop a theoretical model of optimal investment under financial constraints. Our model endogenizes the costs of external … investment is U-shaped. In particular, when a firm's internal funds are negative and sufficiently low, a further decrease leads …
Persistent link: https://www.econbiz.de/10005413170
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Financement, investissement et performances des entreprises industrielles françaises
Paranque, Bernard - EconWPA - 1995
Les interrogations nombreuses au sujet des PME en restent généralement à un constat d' insuffisance de fonds propre, confondant ainsi problème de financement et nature de celui-ci. En outre elles trouvent leur origine dans une comparaison abusive avec les grandes entreprises, ignorant des...
Persistent link: https://www.econbiz.de/10005561653
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Financial Market Imperfections and Investment: an Overview
Calmès, Christian - EconWPA - 2004
The paper examines the interpretation of firms' investment-cash flow sensitivity as an artifact of financial market … investment-cash flow sensitivity is discussed as well as some of the macroeconomic implications of financial market imperfections. …
Persistent link: https://www.econbiz.de/10005077038
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Credit Cycles Redux
Cordoba, Juan; Ripoll, Marla - EconWPA - 2002
Theoretical studies have shown that under unorthodox assumptions on preferences and production technologies, collateral constraints can act as a powerful amplification and propagation mechanism of exogenous shocks. We investigate whether or not this result hold under more standard assumptions....
Persistent link: https://www.econbiz.de/10005126224
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Trade credit in Italy: Evidence from individual firm data
Marotta, Giuseppe - EconWPA - 2000
Interfirm late payments are a hot issue in the EU, as witnessed by the 1998 bills passed in Italy and in the U.K. and by the soon to be approved EU Directive. Comprehensive information, especially on the effective own cost, is however almost absent in the literature. The paper provides the first...
Persistent link: https://www.econbiz.de/10005076953
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A Model of Dynamic Liquidity Contracts
Ozgur, Onur - EconWPA - 2005
possibility of financing projects, (ii) the economy exhibits investment cycles, (iii) credit is rationed if either the lender has …
Persistent link: https://www.econbiz.de/10005413259
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Sequential Models of Bertrand Competition for Deposits and Loans under Asymmetric Information
Bracoud, Frédérique - EconWPA - 2002
This paper analyzes sequential games of double-sided Bertrand competition in the deposit and credit markets, when banks are free to reject customers and cannot distinguish among borrowers. The timing of competition is crucial when customers apply once. Interest rates are pushed upwards when the...
Persistent link: https://www.econbiz.de/10005550896
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Finance, Technology and Inequality in Economic Development
Horii, Ryo; Ohdoi, Ryoji; Yamamoto, Kazuhiro - EconWPA - 2005
This paper presents an overlapping generations model with technology choice and credit market imperfections, in order to investigate a possible source of underdevelopment. The model shows that a better financial infrastructure that provides stronger enforcement of contracts facilitates the...
Persistent link: https://www.econbiz.de/10005118853
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Credit Rationing and Internal Ratings in the face of Innovation and Uncertainty
Fioretti, Guido - EconWPA - 2005
Some empirical investigations are pointing to the fact that high-tech firms are subject to credit rationing to a higher extent than the average. This excess of credit rationing may not be due to information asymmetries, but rather to the inability of credit institutions to screen projects in...
Persistent link: https://www.econbiz.de/10005561669
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Credit Rationing, Bankruptcy Cost, and Optimal Debt Contract for Small Business
Yan, Ying - EconWPA - 1996
This paper examines the relationship between debt contract and the process of resolving financial distress, through either debt restructuring or bankruptcy procedure. It effectively justifies the popularity of the standard debt contract by demonstrating that the standard debt contract is the...
Persistent link: https://www.econbiz.de/10005561709