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We assess the impact of credit constraints on investment, inventories and other working capital and firm growth with a …, as firms with poor investment and growth opportunities may have a higher probability of being credit constrained. We … implement several strategies to overcome this obstacle: proxies for investment opportunities, lagged regressors, random effects …
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This paper considers the implications of habit formation and financial frictions for the propagation of macroeconomic shocks. In a model that is capable of matching asset pricing moments, a short-lived shock that destroys a small fraction of the economy's stock of pledgeable collateral generates...
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endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form … of bank net worth and lead to a "gambling trap" with a persistent drop in investment and output. I bring the model to …
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We investigate asset returns around banking crises in 44 advanced and emerging economies from 1960 to 2018. In contrast to the view that buying assets during banking crises is a profitable long-run strategy, we find returns of equity and other asset classes generally underperform after banking...
Persistent link: https://www.econbiz.de/10012518234
their investment more after the crisis. This negative effect is stronger for firms linked to weak banks with exposures to … corporate investment. …
Persistent link: https://www.econbiz.de/10011975573
We analyze the interlinkages between foreign direct investment (FDI) and foreign portfolio investment (FPI) between … stock of FPI. Most importantly, we find that information about foreign fundamentals is revealed via direct investment. In … investors follow firms’ expected foreign investment decisions …
Persistent link: https://www.econbiz.de/10003554962