Investment, perception of risk and financial constraints

This thesis studies how firms’ investment and credit are affected by different financial imperfections related to firm and bank learning, relationship lending and financial wealth. After reviewing in chapter 2 the related literature, in chapter 3 I investigate the main determinants of different type...

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Detalles Bibliográficos
Autor: Ugarte Ruiz, Alfonso
Tipo de recurso: tesis doctoral
Estado:Versión publicada
Fecha de publicación:2011
País:España
Institución:CBUC, CESCA
Repositorio:TDR. Tesis Doctorales en Red
OAI Identifier:oai:www.tdx.cat:10803/22670
Acceso en línea:http://hdl.handle.net/10803/22670
Access Level:acceso abierto
Palabra clave:Financial constraints
capital market imperfections
investment-cash flow
bank competition
internal funds
Restricciones Financieras
Imperfecciones del Mercado de capital
tipos de interés
competencia bancaria
costes de quiebra
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Descripción
Sumario:This thesis studies how firms’ investment and credit are affected by different financial imperfections related to firm and bank learning, relationship lending and financial wealth. After reviewing in chapter 2 the related literature, in chapter 3 I investigate the main determinants of different types of financial constraints, such as credit rationing and excessive cost of debt, by constructing new measures of these problems based on qualitative data. I then develop in chapter 4 a model of firm investment with financial constraints and Bayesian learning that provides a new framework to analyze the problem of asymmetric learning between a bank and a firm and its effect on a firm’s investment decision. This model is used to investigate, theoretically and empirically, the relationship between firms’ investment and internal funds in the presence of limited information, learning and bankruptcy costs, providing new arguments to support a ushaped curve theory of investment and internal funds. Finally, in chapter 5 this model is used to analyze how relationship lending affects the evolution of interest rates during the life cycle of firms.