Black-owned businesses tend to operate with less finance and employ fewer workers than those owned by Whites. Motivated a simple conceptual framework, we document these facts show they are causally connected using large firm-level surveys linked universal employer data from the Census Bureau. We find that racial financing gap is most pronounced at start-up tends narrow firm age. At any age, fir...

Abstract This paper analyzes the effect of firms engaging in global value chains (GVCs) and suffering from financial constraints on innovation. To explore this relationship, study relies firm-level data World Bank Enterprise Surveys (WBES) for 146 countries during period between 2006 2020. The aim is to empirically link two literature strands, one GVC participation that constraints, examine the...

Efficient market hypothesis predicts that capital markets are beset with cer-tain biases which result from wrong estimation, and negatively influence shareholders’ expectations for higher returns, which in turn affects invest-ment efficiency, financial constraints and corporate performance efficacy in competitive markets, and eventually mitigates firm value. The present study aims at examining ...