We find that green bond issuers are more financially constrained. use three measures of financial constraint, which the FCP index, SA and Altman’s Z score. test link between issuance constraints using difference in means, regression analyses a matching procedure. finally document these increase after first issuance.

Abstract Financial constraints preclude many surplus producing economic transactions, and inhibit the growth of others. This paper models financial as interaction two forces: agent has persistent private information is strapped for cash. The wedge between optimal efficient allocation, termed distortion, increases over time with each successive “bad shock” decreases “good shock”. At any point in...

Abstract Using the micro data of Chinese manufacturing firms, this study analyzes impact financial constraints on firms’ markup and their influence mechanism. The findings suggest that significantly reduce markup. result is still valid after a series robustness tests, such as key indicator substitution, analysis endogeneity problems, controlling for other policy changes, dynamic panel model est...

We estimate firms’ cash flow sensitivity of cash to empirically test how the financial system’s structure and activity level influence their financial constraints. For this purpose we merge Almeida et al. (2004), a path-breaking design for evaluating a firm’s financial constraints, with Levine (2002), who paved the way for comparative analysis of financial systems around the world. We conjectur...