Effects of financial distress and financing constraints on trade credit provisions

Effects of Managerial Sentiments and Financial Constraints on Investment Sensitivity

Abstract: In the present study, managerial sentiment refers to the pleasant and optimistic feeling of the managers and decision makers in the companies. Optimism can be considered a spiritual state showing ones hope for the future. Talking about a company, it is the manger’s hope for future of the company. Accordingly, the present study examines effects of the managerial optimism on the relati...

Gender, Investment Financing and Credit Constraints

This paper provides the first evidence on gender differences in investment financing, credit application and credit denial rates in Germany. The empirical analysis is carried out on a sample of firms drawn from the KfW Mittelstandspanel, a representative survey of German SMEs for the period from 2003 to 2009. Our results suggest that in female-owned firms the share of internal capital in invest...

Financial Development , Endogenous Dependence on External Financing , and Trade ∗

The influential papers on the effect of credit constraints on growth and international trade (Rajan and Zingales, 1998; Manova, 2013) tend to assume that asset tangibility and the share of external borrowing are exogenous industry characteristics, which are timeand country-invariant. In the finance literature, however, the share of external borrowing is viewed as endogenous and dependent on the...

Financial Development and Financing Constraints : International

Credit Policy in times of Financial Distress

This essay evaluates two central bank policy tools, capital requirements and lending of last resort, designed to avert financial panics in the context of endowment economies with complete markets and limited borrower commitment. Credit panics are self-fulfilling shocks to expected credit conditions which cause transitions from an optimal but fragile steady state to a suboptimal state with zero ...