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Persistent link: https://www.econbiz.de/10003355232
We construct an index of firms' external finance constraints via GMM estimation of an investment Euler equation. Unlike the commonly used KZ index, ours is consistent with firm characteristics associated with external finance constraints. Constrained firms' returns move together, suggesting the...
Persistent link: https://www.econbiz.de/10012713551
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Persistent link: https://www.econbiz.de/10007019755
We construct an index of firms' external finance constraints via generalized method of moments (GMM) estimation of an investment Euler equation. Unlike the commonly used KZ index, ours is consistent with firm characteristics associated with external finance constraints. Constrained firms'...
Persistent link: https://www.econbiz.de/10005564029