This paper proposes a method to calculate undistributed profits, thus saving rates of non-financial firms using only the information given in their balance sheets. This allows us to analyze the saving behavior of non-financial firms even in the absence of their statement of cash flows, which...

Financing of investments through green bonds has grown rapidly in recent years. But definitions of what makes a bond "green" vary. Various certification mechanisms have evolved to allow more granularity as well as continuity in assessment. Green bonds have been priced at issuance at a premium on...

Using the 2000 introduction of the Clause 49 regulations in India as a natural experiment, we examine the impact of increased disclosure on firm financing choices. Clause 49 introduced transparency and disclosure rules, among others, and listed Indian firms were required to adopt it by 2006....

We investigate how changes in the availability of bank credit influence how public firms manage their working capital, which is essential to their operations. In doing so, we provide an enhanced understanding of what significantly influences corporate working capital management. We find that...

We present new measures of market power for the banking industry in Colombia and estimate their effect on the cost of credit for non-financial firms. Our results suggest that bank competition increased during the 2006-2008 period–even as concentration increased–but decreased thereafter....

It is still an open question what kind of smart capital relational investors actually supply. We divide smart capital into several components and conduct a survey among 85 German suppliers of start-up finance. The results show that the degree of smartness is determined by the financial product...

Given the increasing importance of private equity in the world economy, we examine the strategic decision to finance a business in an international context by evaluating whether private equity is a substitute for or a complement to other sources of external finance. We find strong evidence that...

To address how technological progress in financial intermediation affects the economy, a costly-state verification framework is embedded into the standard growth model. The framework has two novel ingredients. First, firms differ in the risk/return combinations that they offer. Second, the...

This paper looks at the effect of credit constraints on skill acquisition when agents have heterogeneous abilities and wealth. We use a two factor general equilibrium model and assume credit markets are absent. We explore the effects of trade on factor earnings as well as the evolution of the...

The perceptions of informal finance have undergone significant changes. Historically, informal finance was characterised as highly exploitative. This paradigm has changed owing to a better understanding of informal finance, the changes that have occurred in rural financial markets, economic...