Showing 1 - 10 of 15,308
This paper tests for the sensitivity of R&D to financing constraints conditional on restrictions in external financing. Financing constraints of firms are identified by an exogenously calculated rating index. Restrictions in external financing are determined by (i) the specific time period...
Persistent link: https://www.econbiz.de/10012196342
The SME sector is often hailed as an important engine of economic growth. But recent research suggests that young rather than small firms are the main contributors to employment growth. This paper shows that young firms are also key contributors to profit growth across advanced economies. It...
Persistent link: https://www.econbiz.de/10013031307
Persistent link: https://www.econbiz.de/10011299332
We study how longer bankruptcy trials affect the size, structure and allocation of corporate capital. Exploiting a legal reform that reorganised the judicial districts in Italy, we find that the interquantile reduction in the length of bankruptcy trials increases the firm's capital stock and...
Persistent link: https://www.econbiz.de/10013217253
The vast majority of firms in developing economies are micro and small enterprises owned by families whose members also provide the labour to the units. Often, they fail to grow in size even with the relaxation of credit constraints. In this paper, we show that frictions in the labour market...
Persistent link: https://www.econbiz.de/10013104968
The vast majority of firms in developing economies are micro and small enterprises owned by families whose members also provide the labour to the units. Often, they fail to grow in size even with the relaxation of credit constraints. In this paper, we show that frictions in the labour market...
Persistent link: https://www.econbiz.de/10009548201
Walter Bagehot is remembered today primarily as a proponent of the doctrine of lender of last resort, in which central banks pump money into the economy to ameliorate the damage from a financial crisis. But none of the growing number of publications about him appear to investigate in depth...
Persistent link: https://www.econbiz.de/10012863864
This paper shows that the notion of rate of return is best understood through the lens of the average-internal-rate-of-return (AIRR) model, first introduced in Magni (2010a). It is an NPV-consistent approach based on a coherent definition of rate of return and on the notion of Chisini mean, it...
Persistent link: https://www.econbiz.de/10012962027
Multiple interest rate analysis (MIRA) is the study of all interest rate solutions to the time value of money (TVM) equation. These solutions include not only the orthodox solution produced by a financial calculator or spreadsheet but also the unorthodox solutions that a typical financial...
Persistent link: https://www.econbiz.de/10012983846
The net present value (NPV) of an investment project having many potential outcomes can be expressed as a weighted average of the NPVs calculated from the individual outcomes, the weights being the outcome probabilities. Danielson (2016) demonstrates that this formula does not apply to the...
Persistent link: https://www.econbiz.de/10012984397