Financial Development and Financing Constraints: International Evidence from the Structural Investment Model

Financial Development and Financing Constraints: International Evidence from the Structural Investment Model

This paper provides a micro-level evidence that ...nancial development impacts growth by reducing ...nancing constraints that would otherwise restrict e¢cient ...rm investment. I estimate a structural model based on the Euler equation for investment using ...rm-level data from 40 countries. I ...nd a strong negative relationship between the extent of ...nancial market development, and the sensi...

Financial Development and Financing Constraints : International

Financial Constraints and the Income Sensitivity of Investment: Evidence From International Housing Markets

The specific conditions that characterize housing finance contracts allow me to determine a precise relationship between financial constraints and the income sensitivity of investment demand: relaxation of financial constraints is associated with higher income sensitivity of housing investment demand (and equilibrium housing prices). This implication differs from those explored in previous rese...

Ownership structure and financial constraints Evidence from a structural estimation

This article examines the impact of the divergence between corporate insiders’ control rights and cash-flow rights on firms’ external finance constraints via generalized method of moments estimation of an investment Euler equation. Using a large sample of U.S. firms during the 1994–2002 period, we find that the shadow value of external funds is significantly higher for companies with a wider in...

Effects of Managerial Sentiments and Financial Constraints on Investment Sensitivity

Abstract: In the present study, managerial sentiment refers to the pleasant and optimistic feeling of the managers and decision makers in the companies. Optimism can be considered a spiritual state showing ones hope for the future. Talking about a company, it is the manger’s hope for future of the company. Accordingly, the present study examines effects of the managerial optimism on the relati...