We analyze the relationship between firm-specific shocks and aggregate fluctuations. In particular, profitability of firms affected by a negative shock worsens. To the extent that the banks cannot distinguish between aggregate and firm-specific profitability shocks, they will adjust interest...

Das vorliegende Buch untersucht die Finanzierung neuer Privatunternehmen in den Transformationsländern. Im Mittelpunkt stehen dabei kleine und mittelständische Unternehmen und ihre Möglichkeiten auf den Kapitalmärkten. Ob und in welchem Umfang der Staat diesen Unternehmen durch Kredite und...

Applying the Monti-Klein framework, we examine the optimal financing strategy of a fi rm that requires funding for individual projects at an imperfect credit market. In particular, we study under which circumstances the firm should raise debt for projects separately (decentralized funding) or...

Ten years into the transition, newly emerging private enterprises in transition economies, usually described as small and medium-sized enterprises (SMEs) in the international context, have come to play an increasingly important role as the driving engines of economic growth and employment...