Financial constraints on investment: Effects of firm size and the financial crisis

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...

Firm Failure and Financial Crisis

In this paper we try to analyze the link between some industrial policies in South Korea and the 1997 ̄nancial crisis. We argue that while the industrial policies have greatly promoted the development of many local industries, they also have encouraged local ̄rms to get over-optimistic, to over-invest, and to over-produce. That increases the risks the ̄rms are facing. When a bad time occurs, ma...

Investigating the Effect of Financial Constraints and Different Levels of Agency Cost on Investment Efficiency

This research attempts to investigate the effect of financial constraints and different levels of agency costs on the investment efficiency of companies in Iran. Following the design of the financial risk assessment indexes, the transaction information was collected from the Stock Exchange in the five-year period of 2011-2015. The statistical sample consists of 128 companies selected by samplin...

Financial Constraints and Firm Dynamics

The short run effects of financial constraints (FCs) on the expected growth rate of firms and their long-term implications on the evolution of the firm size distribution have been recently investigated by several scholars. In this paper we extend the analysis to a wider and largely unexplored range of possible FCs effects, including the autoregressive and heteroskedastic structure of the firm g...

Economic Growth, Over-investment, and Financial Crisis