The global financial crisis had detrimental consequences for banks’ balance sheets, as well as for their funding costs and profitability, thus weighing negatively on their ability to supply new loans. As a result, banks tightened credit standards for all borrowers, including non-financial corporations. The restricted access to bank funding for the corporate sector induced the latter to seek oth...

We analyze the trade-off faced by growth firms between hoarding cash (and delaying investment) and incurring dilution from external financing. Such nonprecautionary hoarding features a self-reinforcing effect: firms with better investment opportunities hoard less, yet grow successful and cash-rich more quickly. We show that non-precautionary hoarding affects the choice between public and privat...

BACKGROUND Despite common recognition of joint responsibility for global health by all countries particularly to ensure justice in global health, current discussions of countries' obligations for global health largely ignore obligations of developing countries. This is especially the case with regards to obligations relating to health financing. Bearing in mind that it is not possible to achiev...

In this paper we use the lens provided by the resourceand competence-based perspective and agency theory to analyse benefits and costs arising from separation between ownership and control in hightech start-ups. We argue that when these firms obtain external financing, the associated separation between ownership and control generates agency costs. Whether these costs exceed the benefits of exte...

This paper provides a theory to analyze the consequences of financing constraints for firm characteristics such as investment, profitability, leverage, the fraction of external equity, the probability of default and the cost of capital. This theory is based on the effects of future investment opportunities and the legal protection of investors on entrepreneurs’ incentives to divert funds to the...

The paper represents an attempt to determine the level of fiscal deficit which does not require more financing than is compatible with sustainable internal and external borrowing, and which is consistent with the expected and desirable levels of macroeconomic indicators, such as economic growth and the rate of inflation. At the same time it takes into account the existing foreign trade potentia...

Access to finance appears to be among the most severe obstacles of the private firms’ growth particularly in developing and less developed countries. Using the micro data over 1,500 enterprises, our study aims to understand the determinants of firm-level access to external finance before and after the global financial crisis 2008-09, and how in general the crisis affected the financing obstacle...

Financing through crowdfunding is growing rapidly, especially for start-ups. Investment financing via crowdfunding is integrated with the real side of the firm as future consumers may potentially provide all or part of the required resources. We derive the optimal pre-sale crowdfunding contract of a financially constrained monopolist and analyze its implications for production, investment and w...

This paper examines how asset risk impacts corporate investment and financing decisions. We derive a general model that incorporates risk, adjustment cost, and depreciation features of assets-in-place into investment decisions. The model suggests that the risk and adjustment cost of assets-in-place reduce both corporate investment and financing. We empirically test the model in a panel of US fi...