EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18022
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorTomat, Gian Mariaen_US
dc.date.accessioned2009-01-28T15:06:11Z-
dc.date.available2009-01-28T15:06:11Z-
dc.date.issued2008en_US
dc.identifier.citationEconomics: The Open-Access, Open-Assessment E-Journal 2 2008-9 1-26 doi:10.5018/economics-ejournal.ja.2008-9-
dc.identifier.pidoi:10.5018/economics-ejournal.ja.2008-9-
dc.identifier.urihttp://hdl.handle.net/10419/18022-
dc.description.abstractThe 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.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofserieseconomics - The Open-Access, Open-Assessment E-Journal 2008-9en_US
dc.subject.jelE22en_US
dc.subject.jelD92en_US
dc.subject.ddc330en_US
dc.subject.keywordFirm´s investmenten_US
dc.subject.keywordfinancial constraintsen_US
dc.subject.keywordTobin´s marginal qen_US
dc.subject.keyworduncertaintyen_US
dc.subject.stwInvestitionen_US
dc.subject.stwEntscheidung bei Unsicherheiten_US
dc.subject.stwFinanzmarkten_US
dc.subject.stwUnvollkommener Markten_US
dc.subject.stwTobin's Qen_US
dc.subject.stwTheorieen_US
dc.titleModeling the Effects of Financial Constraints on Firm's Investmenten_US
dc.typeArticleen_US
dc.identifier.ppn560131992en_US
dc.identifier.urlhttp://www.economics-ejournal.org/economics/journalarticles/2008-9-
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.en-
dc.identifier.repecRePEc:zbw:ifweej:7126-
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles

Files in This Item:
File Description SizeFormat
economics_2008-9.pdf417.09 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.