We investigate financing constraints in a large cross-country data set covering most of the European economy. Firm level investment sensitivity to cash flow is used to identify financing constraints. We find that the sensitivities are significantly positive on average, controlling for country...

Based on 1182 dyads of German new ventures and venture capitalists involved in a financing round between 2002 and 2007, we examine the impact of spatial proximity on the likelihood of an investment. We find that with each triplication of journey time the relative likelihood of an investment...

This paper reviews the obstacles for an appropriate financial architecture of new economy firms in developing countries by reviewing the theoretical and some preliminary empirical underpinnings of the importance of legal and institutional barriers. Apart from the more conventional institutional...

This paper investigates the determinants of corporate risk taking. Shareholders with substantial equity ownership in a single company may advocate conservative investment policies due to greater exposure to firm risk. Using a large cross-country sample, I find a positive relationship between...

This paper investigates the impact of pyramid ownership structure and multiple controlling shareholders on firm leverage. Pyramids, having at least one controlling shareholder and a subsidiary, rely significantly more on debt financing than non-pyramid firms. Moreover, higher leverage is...

We analyze firms’ investment behavior, differentiating firms according to the cash flow levels they experience during their lifecycles. We consequently consider the firm as the basic unit and not firm-year observations. Firms with persistent positive cash flow show higher investment-cash flow...

Underpricing of corporate bond offerings result in excess returns for investors (new issue premia) but lead to higher costs for the issuer. This paper analyses the new issue premia of 1.556 Euro denominated fixed coupon corporate bonds and finds a systematic underpricing of new issued bonds. The...

In this working paper we basically try to answer two questions. First, we ask whether a crypto-currency is money or a currency at all in the traditional economic sense? Second, we ask whether a financial manager of a company may generate cost advantages by issuing debt in a crypto-currency? We...

Seit 2003 werden die deutschen Unternehmen im Rahmen des ifo Konjunkturtests regelmäßig auch nach ihrer Beurteilung der Kreditvergabebereitschaft der Banken gefragt. Die Antworten auf diese »Kreditfrage« werden sowohl für die Bildung makroökonomischer Indikatoren – wie der...