We present a microeconometric study of the impact of financial constraints on investment decisions of 755 quoted and unquoted West German firms over the period 1989 to 1994. The underlying theoretical model is based upon rational expectations and convex adjustment costs. The panel data estimates...

We have two main objectives in this work. Firstly, to link product market structure with the inventory policy followed by firms. Secondly, to study the effect of different financila contracts in firm's policy, in particular in its inventory policy. This will allow to define for a given economic...

This paper analyzes the strategic role of the temporal dimension of loan commitments in a model of competitive banks with imperfect competition in the borrower's industry.

This paper develops a signaling model to investigate a firm's optimal financial response to corporate income taxation under informational asymmetries. The model obtains informationally constrained efficient equilibria in which a firm's debt level and inside equity position jointly serve as a...

This paper analyzes the transmission mechanisms of monetary policy in a general equilibrium model of securities markets and banking with asymmetric information. Banks' optimal asset/liability policy is such that in equilibrium capital adequacy constraints are always binding. Asymmetric...

We examine the impact of liquidity shocks by exploiting cross-bank liquidity variation induced by unanticipated nuclear tests in Pakistan. We show that for the same firm borrowing from two different banks, its loan from the bank experiencing a 1 percent larger decline in liquidity drops by an...

Credit risk measurement and management become more important in all financial institutions in the light of the current financial crisis and the global recession. This particularly applies to most of the complex structured financing forms whose risk cannot be quantified with com-mon rating...

Starting from the need to optimize the financial structure of the enterprise, the article aims to review a few concepts related to financial structure and bankruptcy risk, the presentation of the bankruptcy risk analysis based on assets balance sheet, liquidity ratios and last, but not least,...