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Capital Market Financing, Firm Growth, Firm Size Distribution

Didier, Tatiana - 2014

Which firms issue equity and debt in domestic and international markets and what happens to their assets, sales, and number of employees? To answer these questions, we assemble a new dataset on firm-level capital raising activity during 1991-2011, which we match with firm attributes for 45,527...

Persistent link: https://www.econbiz.de/10013050155

The Financing of R&D and Innovation

Hall, Bronwyn H. - 2014

Evidence on the "funding gap" for investment innovation is surveyed. The focus is on financial market reasons for underinvestment that exist even when externality-induced underinvestment is absent. We conclude that while small and new innovative firms experience high costs of capital that are...

Persistent link: https://www.econbiz.de/10013070796

The Importance of Trust for Investment : Evidence from Venture Capital

Bottazzi, Laura - 2014

We examine the effect of trust on financial investment and contracting decisions in a micro-economic environment where trust is exogenous. Using hand-collected data on European venture capital, we show that the Eurobarometer measure of trust among nations significantly affects investment...

Persistent link: https://www.econbiz.de/10013068297

Financing Constraints and Entrepreneurship

Kerr, William - 2014

Financing constraints are one of the biggest concerns impacting potential entrepreneurs around the world. Given the …

Persistent link: https://www.econbiz.de/10013070601

Conflict of Interest in the Issuance of Public Securities : Evidence from Venture Capital

Gompers, Paul A. - 2010

In this paper we investigate potential conflicts of interest in the issuance of public securities in a setting analogous to a universal bank, i.e., the underwriting of initial public offerings by investment banks that hold equity in a firm through a venture capital subsidiary. We contrast two...

Persistent link: https://www.econbiz.de/10012763357

Venture Capital Contracting and Syndication : An Experiment in Computational Corporate Finance

Fluck, Zsuzsanna - 2006

This paper develops a model to study how entrepreneurs and venture-capital investors deal with moral hazard, effort provision, asymmetric information and hold-up problems. We explore several financing scenarios, including first-best, monopolistic, syndicated and fully competitive financing. We...

Persistent link: https://www.econbiz.de/10012783670

Equilibrium Corporate Finance and Intermediation

Bisin, Alberto - 2014

This paper analyzes a class of competitive economies with production, incomplete financial markets, and agency frictions. Firms take their production, financing, and contractual decisions so as to maximize their value under rational conjectures. We show that competitive equilibria exist and that...

Persistent link: https://www.econbiz.de/10013049698

Competition and R&D Financing Decisions : Theory and Evidence from the Biopharmaceutical Industry

Thakor, Richard T. - 2015

How does competition affect innovation and how it is financed in R&D-intensive firms? We study the interaction between … competition, R&D investments, and the financing choices of such firms using data on biopharmaceutical firms. To motivate the … existing assets are all determined in response to the degree of competition in the industry. The key predictions are that, as …

Persistent link: https://www.econbiz.de/10013029032

Corporate Debt Structure and the Financial Crisis

De Fiore, Fiorella - 2014

We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...

Persistent link: https://www.econbiz.de/10013040533

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …

Persistent link: https://www.econbiz.de/10013121593