Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/108102 
Erscheinungsjahr: 
2006
Schriftenreihe/Nr.: 
IEHAS Discussion Papers No. MT-DP - 2006/6
Verlag: 
Hungarian Academy of Sciences, Institute of Economics, Budapest
Zusammenfassung: 
In this paper we describe a theoretical model of optimal investment of various types of financially constrained firms. We show that the resulting relationship between internal funds and investment is non-monotonic. In particular, the magnitude of the cash flow sensitivity of the investment is lower for firms with credit rationing compared to firms that are able to obtain short-term external financing. The inverse relationship is driven by the leverage multiplier effect. A positive cash flow shock increases the short-term borrowing capacity of the firm, which in turn has a positive effect on investment and firm's growth. Moreover, the leverage multiplier effect is the highest for firms relying on short-term credits and it is lower for firms that are able to obtain long-term financing. Analysing a large euro area data set we find strong empirical support for our theoretical predictions. The results also help to explain some contradictory findings in the financing constraints literature.
Schlagwörter: 
Financing constraints
growth
investment
cash flow sensitivity
JEL: 
D92
G3
G32
ISBN: 
9639588776
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
914.88 kB





Publikationen in EconStor sind urheberrechtlich geschützt.