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Financial Constraints and Moral Hazard : The Case of Franchising
Fan, Ying; Kuhn, Kai-Uwe; Lafontaine, Francine - 2021
Financial constraints are an important impediment to the growth of small businesses. We study theoretically and empirically how the financial constraints of agents affect their decisions to exert effort, and, hence the organizational decisions and growth of principals, in the context of...
Persistent link: https://www.econbiz.de/10013315688
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Debt Recovery in Firm Liquidations : Do Liquidation Trustees Matter?
Cepec, Jaka - 2016
Insolvency systems play a crucial role in protection of creditor rights, yet micro-level empirical evidence on the functioning of insolvency regimes worldwide is sparse. We investigate whether creditors' recovery of outstanding claims, a measure of ex-post efficiency of an insolvency regime,...
Persistent link: https://www.econbiz.de/10012982336
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How Firms Export : Processing vs. Ordinary Trade with Financial Frictions
Manova, Kalina - 2016
The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies' choice between processing and ordinary trade –...
Persistent link: https://www.econbiz.de/10012994784
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Flexible Prices and Leverage
D'Acunto, Francesco - 2017
The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...
Persistent link: https://www.econbiz.de/10012962123
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Business Groups in Emerging Markets - Financial Control and Sequential Investment
Hainz, Christa - 2006
Business groups in emerging markets perform better than unaffiliated firms. One explanation is that business groups substitute some functions of missing institutions, for example, enforcing contracts. We investigate this by setting up a model where firms within the business group are connected...
Persistent link: https://www.econbiz.de/10012779693
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Taxation and the Optimal Constraint on Corporate Debt Finance
Birch Sørensen, Peter - 2014
the tax distortions to corporate financing decisions amounts to 2-3 percent of total corporate tax revenue, and the …
Persistent link: https://www.econbiz.de/10013039997
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Microeconometric Evidence of Financing Frictions and Innovative Activity
Tiwari, Amaresh - 2014
Using Dutch data we empirically investigate how financing and innovation vary across firm characteristics. We find that … when firms face financial constraints, debt financing and innovation choices are not independent of firm characteristics … innovate and the change in the propensity to innovate no longer varies with firm characteristics. We find that financing …
Persistent link: https://www.econbiz.de/10013057269
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When Credit Dries Up : Job Losses in the Great Recession
Bentolila, Samuel - 2014
We use a unique dataset to estimate the impact of a large credit supply shock on employment in Spain. We exploit marked differences in banks' health at the onset of the Great Recession. Several weak banks were rescued by the State and they reduced credit more than other banks. We compare...
Persistent link: https://www.econbiz.de/10013060983
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A Theory of Crowdfunding - A Mechanism Design Approach with Demand Uncertainty and Moral Hazard
Strausz, Roland - 2016
traditional entrepreneurial financing which focuses on controlling moral hazard …
Persistent link: https://www.econbiz.de/10012979605
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The Commitment Role of Equity Financing
Fahn, Matthias - 2014
firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and … popular among employees. We demonstrate that such financing behavior may be driven by implicit arrangements made between a … firm and its managers/employees. Equity financing generally strengthens a firm's credibility to honor implicit promises …
Persistent link: https://www.econbiz.de/10013051377