Financing constraints, home equity and selection into entrepreneurship

Financing Constraints and Selection into Entrepreneurship

There is growing belief that countries with better financing environments are associated with higher economic growth because they facilitate entrepreneurship and hence the Schumpeterian process of 'creative destruction'. This dissertation explores this hypothesis in more detail by understanding how the financing environment for new ventures impacts outcomes such as individuals' decision to beco...

Financing Constraints and Entrepreneurship

Democratizing Entry: Banking Deregulations, Financing Constraints, and Entrepreneurship

We study how US branch banking deregulations a¤ected the entry and exit of …rms in the non-…nancial sector using establishment-level data from the US Census Bureau’s Longitudinal Business Database. The comprehensive micro-data allow us to study how the entry rate, the distribution of entry sizes, and survival rates for …rms responded to changes in banking competition. We also distinguish the re...

Home equity conversion and the financing of long-term care

Home equity conversion for the elderly is a means for elderly homeowners to draw down a portion of their accumulated wealth without having to sell their homes and/or move. The instruments to convert equity have substantial promise for matching the expenditure needs associated with long-term care services. There have been no formal attempts to pair these potential revenues and expenditures, but ...

Overvalued Equity and Financing Decisions

We test whether equity overvaluation affects corporate financing decisions using an ex ante misvaluation measure that filters firm scale and growth prospects from market price. We find that equity issuance and total financing by firms increase with equity overvaluation; but only among overvalued stocks. Also consistent with behavioral theories, we find that the sensitivity of equity issuance to...