Financing constraints and fixed-term employment: Evidence from the 2008-9 financial crisis
نویسندگان
چکیده
منابع مشابه
Financing Constraints and Fixed-Term Employment Contracts
The aim of this paper is to identify the effect of financing constraints on the employment decisions of firms. We present a theoretical model that determines the optimal use of fixed term and permanent contracts in the presence of financing constraints. We then estimate the effect of financing constraints on the dynamics of fixed-term employment contracts versus permanent employment contracts f...
متن کاملFinancing constraints, employment, and labor compensation: evidence from the subprime mortgage crisis
This paper identifies the effect of financing constraints on firms’ labor demand. We exploit exogenous funding shocks to German savings banks during the US mortgage crisis that are unrelated to local conditions. We find that firms with credit relationships with affected banks experienced a significant decline in employment and in labor compensation relative to firms whose credit relationships w...
متن کاملDoes Diversification Create Value in the Presence of External Financing Constraints? Evidence from the 2008–2009 Financial Crisis
We examine whether and why the value of diversification changed during the 2008–2009 financial crisis. We find that diversified firms increased in value relative to single-segment firms during the crisis, a result that is not driven by the endogeneity of either financing constraints or firms’ diversification choices. We also find that the increase did not simply reflect changes in investor perc...
متن کاملHousehold Financial Distress and Initial Endowments: Evidence from the 2008 Financial Crisis.
This paper studies in utero exposure to the 2008 financial crisis. Exploiting the sudden and unexpected collapse of the Icelandic economy, I find that first-trimester exposure to the crisis led to a sizable and significant reduction in birth weight, increased the probability of a low birth weight ( < 2500 g), and decreased the probability of a high birth weight ( > 4000 g). I also find evidence...
متن کاملDoes Diversification Create Value in the Presence of External Financing Constraints? Evidence from the 2007-2009 Financial Crisis
We show that the value of corporate diversification increased during the 2007–2009 financial crisis. Diversification gave firms both financing and investment advantages. First, conglomerates became significantly more leveraged relative to comparable focused firms. Second, conglomerates’ access to internal capital markets became more valuable not just because external capital markets became more...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: European Economic Review
سال: 2017
ISSN: 0014-2921
DOI: 10.1016/j.euroecorev.2016.12.009