|
EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Economics: The Open-Access, Open-Assessment E-Journal - Discussion Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/17961
|
| | |
Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Tomat, Gian Maria | | en_US |
| dc.date.accessioned | | 2009-01-28T15:05:13Z | | - |
| dc.date.available | | 2009-01-28T15:05:13Z | | - |
| dc.date.issued | | 2007 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/17961 | | - |
| dc.description.abstract | | The paper develops a model of firm´s investment under uncertainty with financial market imperfections and analyzes the effects of financial constraints on firm´s investment. Firm´s investment is an increasing function of the firm´s marginal q, however the investment function is characterized by an upper bound that depends on the firm´s borrowing capabilities. The firm´s marginal q is the sum of the expected value of the marginal profitability of the physical capital stock and of a positive external finance premium. In the presence of financial market imperfections the firm forms expectations about future financial conditions and these expectations raise the firm´s current marginal q. Similarly, the shadow price of firm´s debt is the sum of the interest cost of debt repayment and of a provision for external finance that depends on the firm´s expectations over future financial conditions. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Kiel Institute for the World Economy (IfW) Kiel | | - |
| dc.relation.ispartofseries | | Economics Discussion Papers / Institut für Weltwirtschaft 2007-38 | | en_US |
| dc.subject.jel | | E22 | | en_US |
| dc.subject.jel | | D92 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | firm´s investment | | en_US |
| dc.subject.keyword | | financial constraints | | en_US |
| dc.subject.keyword | | Tobin´s marginal q | | en_US |
| dc.subject.keyword | | uncertainty | | en_US |
| dc.title | | Modeling the Effects of Financial Constraints on Firm´s Investment | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 558404030 | | en_US |
| dc.rights.license | | http://creativecommons.org/licenses/by-nc/2.0/de/deed.en | | - |
| dc.identifier.repec | | RePEc:zbw:ifwedp:6165 | | - |
| Appears in Collections: | | Economics: The Open-Access, Open-Assessment E-Journal - Discussion Papers
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|