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NO DEEP POCKETS: SOME STYLIZED EMPIRICAL RESULTS ON FIRMS’ FINANCIAL CONSTRAINTS
Author(s) -
Carreira Carlos,
Silva Filipe
Publication year - 2010
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/j.1467-6419.2009.00619.x
Subject(s) - stylized fact , economics , investment (military) , constraints accounting , work (physics) , carry (investment) , empirical research , empirical evidence , key (lock) , macroeconomics , finance , microeconomics , accounting , accounting management , computer science , throughput accounting , mechanical engineering , philosophy , accounting information system , computer security , epistemology , politics , political science , law , engineering
This paper is a survey of recent empirical work on financial constraints faced by firms. It is organized as a series of stylized results which mirror what is generally understood about the severity of financial constraints and the effects that they have upon firms. The review of the literature shows that (a) financial constraints are a widespread key concern for firms, hindering their ability to carry out their optimal investment and growth trajectories and (b) the severity of such constraints depends on institutional and firm specific characteristics, as well as on the nature of investment projects.