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Financing constraints and inventories
European Economic Review, 2004Abstract This paper investigates the impact of financing constraints on firms’ inventory and cash management. In particular, it examines the extent to which the presence of such constraints may account for certain empirical regularities. These include, e.g., the excess variance of production vis-a-vis that of sales, as well as the counter-cyclicality
Ward Brown, Urs Haegler
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Investment Irreversibility and Finance Constraints
Oxford Bulletin of Economics and Statistics, 1997This paper analyses the investment behaviour of firms in the presence of irreversibility and of a dividend payout constraint. Estimation of investment equations for a panel of UK firms shows that the Q model performs well, over regions of the sample space, where neither constraint is likely to be binding.
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On the theory of financing constraints
2011p.
Mansour, Walid, Chichti, Jamel E
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Asymmetric Information, Financing Constraints, and Investment
The Review of Economics and Statistics, 1987The results of a number of theoretical papers lead to the hypothesis that financial variables affect capital sp ending because of asymmetric information in capital markets. The auth ors review the relevant theory and test this hypothesis with a large sample of firm data.
Fazzari, Steven M, Athey, Michael J
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IN DEFENSE OF THE FINANCE CONSTRAINT
Economic Inquiry, 1981Simple models of monetary trade commonly impose a finance constraint on expenditure. It is often suggested that this finance constraint is artificial - a result of money's being the only asset, of the absence of credit, and of the special time structure of such models.
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Financing constraints and firm inventory investment: A reexamination [PDF]
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
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Islamic Finance and Participatory Financing Constraints in Pakistan
2019Islamic financial contracts are designed to facilitate financing according to Islamic norms. Islamic financing in its first stage used only the partnership modes of Musharakah and Mudarabah. Later it is realized that, to avoid moral hazards, yet compete successfully with conventional banks, it is necessary to use all permissible Islamic modes and ...
Azam Ali +2 more
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Corporate Borrowing and Financing Constraints
SSRN Electronic Journal, 2001This Paper adopts an optimal contracting approach to internal capital markets. We study the role of headquarters in contracting with outside investors, with a focus on whether headquarters eases or amplifies financing constraints compared to decentralized firms where individual project managers borrow separately.
Inderst, Roman, Mueller, Holger M
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Financing Infrastructure under Budget Constraint [PDF]
In this paper we consider the problem of financing infrastructure when the regulator faces a budget constraint. The optimal budget-constrained mechanism satisfies four properties. The first property is bunching at the top, that is the more efficient firms produce the same quantity. The second property is self-selection for the less efficient firms. The
Axel Gautier, Manipushpak Mitra
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