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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/10010210716
Persistent link: https://www.econbiz.de/10003364605
Thin capitalization rules have become an important element in the corporate tax systems of developed countries. This paper sets up a model where national and multinational firms choose tax-efficient financial structures and countries compete for multinational firms through statutory tax rates...
Persistent link: https://www.econbiz.de/10003771840
firm's financing structure. We analyze the interaction between a firm's capital structure and the type of contracts it uses … substantially more equity financing. …
Persistent link: https://www.econbiz.de/10011674383
crisis: a deterioration in contract enforceability and an increase in nonperforming loans. As a result, the credit crunch in …
Persistent link: https://www.econbiz.de/10011402509
Under weak contract enforcement the trading parties' trust, defined as their belief in other's trustworthiness, appears … important for realizing gains from trade. In contrast, under strong contract enforcement beliefs about other's trustworthiness … appear less important, suggesting that trust and contract enforcement are substitutes. Here we show, however, that trust and …
Persistent link: https://www.econbiz.de/10012415967
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/10010249680
We analyze the effect of investor level taxes, firm-specific ownership structure and firm-specific payout policy on firms' capital structure choice. Our analysis is based on data for 10,983 firms from 13 Central and Eastern European (CEE) countries over the time period 2002-2012. Our results...
Persistent link: https://www.econbiz.de/10011541065
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/10010438191
Diversified firms often trade at a discount with respect to their focused counterparts. The literature has tried to explain the apparent misallocation of resources with lobbying activities or power struggles. We show that diversification can destroy value even when resources are efficiently...
Persistent link: https://www.econbiz.de/10011410226