R&D INVESTMENT, CREDIT RATIONING AND SAMPLE SELECTION

Investment-cash flow sensitivities, credit rationing and financing constraints

The controversy over whether investment-cash flow sensitivity is a good indicator of financing constraints is still unresolved. We tackle it from several different angles and cross-validate our analysis with both balance sheet and qualitative data on self-declared credit rationing and financing constraints. Our qualitative information shows that (self-declared) credit rationing is (weakly) rela...

Investment, Efficiency, and Credit Rationing: Evidence from Hungarian Panel Data

Relying upon a rich and unique panel of Hungarian firms over 7 years, from 1992 up to 1998, this paper estimates simultaneously TFP, Total Factor Productivity, identified as efficiency, and the parameters of a model where investment depends upon internal funds, wages, and sales, as in Prasnikar J. and Svejnar J. (2000). It shows that while real investment is higher in foreign firms, the improve...

Credit and equity rationing in markets with adverse selection

Previous theories of "nancial market rationing focussed on a single market, either the credit or the equity market. An interesting question is whether credit and equity rationing are mutually compatible, and how they interact. We consider a model with twodimensional asymmetric information, where entrepreneurs have private information about both the expected returns and the risk of their project...

Credit scoring and the sample selection bias

For creating or adjusting credit scoring rules, usually only the accepted applicant’s data and default information are available. The missing information for the rejected applicants and the sorting mechanism of the preceding scoring can lead to a sample selection bias. In other words, mostly inferior classification results are achieved if these new rules are applied to the whole population of a...

Sample selection bias in credit scoring models