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Do Financing Constraints Matter for R&D?

Brown, James R. - 2013

Information problems and lack of collateral value should make R&D more susceptible to financing frictions than other … investments, yet existing evidence on whether financing constraints limit R&D is decidedly mixed, particularly in studies of non … equity finance. Our study provides a framework for evaluating financing constraints when firms rely extensively on external …

Persistent link: https://www.econbiz.de/10013094258

Liquidity Management and Corporate Investment During a Financial Crisis

Campello, Murillo - 2010

This paper uses a unique dataset to study how firms managed liquidity during the 2008-09 financial crisis. Our analysis provides new insights on interactions between internal liquidity, external funds, and real corporate decisions, such as investment and employment. We first describe how...

Persistent link: https://www.econbiz.de/10013151684

Financial Constraints for Investment in Brazil

Crisóstomo, Vicente Lima - 2014

The purpose of this work is to verify the existence of financial constraints for investment in Brazil, an emerging market with growing international visibility. Using panel data methodology and GMM, we estimate dynamic investment models based on the Euler equation and Tobin's q for a panel...

Persistent link: https://www.econbiz.de/10013064330

Does managerial ability affect corporate financial constraints? Evidence from China

Huang, Qiubin; Xiong, Mengyuan; Xiao, Ming - 2021

This paper examines the impact of managerial ability on corporate financial constraints. Based on a large sample of Chinese listed companies during the 2007-2019 period, we find that managerial ability is negatively associated with corporate financial constraints. We also find that managerial...

Persistent link: https://www.econbiz.de/10013321543

Firm Investment, Financial Constraint and Voluntary Asset Sales

Gautam, Vikash - 2011

This paper contributes empirically to the ‘Excess Sensitivity' literature by arguing that results obtained by using investment-cash flow sensitivity as a metric to represent finance constraint of firms can be misleading. This is because cash flow apart from signaling change in net worth may...

Persistent link: https://www.econbiz.de/10013132019

Do Investment-Cash Flow Sensitivities Measure Financial Constraints? New Evidence from Unpacking the Black Box

Peeters, Ludo - 2010

, our aim is to shed a new light on this relationship. It is argued that a firm's observed investment and financing …

Persistent link: https://www.econbiz.de/10013144257

Is investment : cashflow sensitivity a good measure of financial constraints?

Wan, Hualin; Zhu, Kai - In: China journal of accounting research : CJAR 4 (2011) 4, pp. 253-270

relative cost of internal and external financing on investment decisions in response to tax changes. China’s 2004 VAT reform … of financing and the value of the tax shield and increased the cost of debt financing. This study shows that in the case …

Persistent link: https://www.econbiz.de/10011823850

Model risk in backtesting risk measures

Evers, Corinna; Rohde, Johannes - 2014

Under the Basel II regulatory framework non-negligible statistical problems arise when backtesting risk measures. In this setting backtests often become infeasible due to a low number of violations leading to heavy size distortions. According to Escanciano and Olmo (2010, 2011) these problems...

Persistent link: https://www.econbiz.de/10010344866

The Predictive Accuracy of Credit Ratings : Measurement and Statistical Inference

Orth, Walter - 2011

Credit ratings are ordinal predictions for the default risk of an obligor. To evaluate the accuracy of such predictions commonly used measures are the Accuracy Ratio or, equivalently, the Area under the ROC curve. The disadvantage of these measures is that they treat default as a binary variable...

Persistent link: https://www.econbiz.de/10013133758

Asset Pledgeability and Firm Innovation

Chen, Huafeng (Jason) - 2020

We examine the effect of debt financing capacity on firm innovation by employing a shock that increases firms' asset …

Persistent link: https://www.econbiz.de/10012853814