Using firm-level data from thirty-five countries over the period 1998-2004, we conduct a
comprehensive investigation of the relation between financial constraints and the sensitivity of
investments to internal and external funds. Our investigation shows that, in the majority of
countries, the investments of financially constrained firms are not highly sensitive to internal
funds, which confirms the results of prior U.S. studies. Moreover, in many countries, financially
constrained firms use substantial amounts of external funds, and their investments tend to be
more sensitive to external financing than to internal financing. Our evidence is at odds with the
standard view in the financial constraint literature that financially constrained firms face
restricted access to external financing.
JEL Classification: G31, G32
Keywords: financial constraints, investment-cash flow sensitivity, external financing
학술대회/행사
학술대회안내
[2008년 제 4차] Internal and External Financing of Financially Cons
작성자 : 관리자
조회수 : 1080
게시일 :
2008-12-11