209
Views
4
CrossRef citations to date
0
Altmetric
Original Articles

Bankruptcy, Investment, and Financial Constraints: Evidence from the Czech Republic

ORCID Icon &

REFERENCES

  • Agca, S., and A. Mozumdar. 2008. “The Impact of Capital Market Imperfections on Investment-Cash Flow Sensitivity.” Journal of Banking & Finance 32 (2):207–16. doi:10.1016/j.jbankfin.2007.02.013.
  • Agca, S., and A. Mozumdar. 2017. “Investment–Cash Flow Sensitivity: Fact or Fiction?” Journal of Financial and Quantitative Analysis 52 (3):1111–41. doi:10.1017/S0022109017000230.
  • Arellano, M., and S. Bond. 1991. “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” Review of Economic Studies 58 (2):277–97. doi:10.2307/2297968.
  • Arellano, M., and O. Bover. 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Models.” Journal of Econometrics 68 (1):29–51. doi:10.1016/0304-4076(94)01642-D.
  • Avery, R. B., R. W. Bostic, and K. A. Samolyk. 1998. “The Role of Personal Wealth in Small Business Finance.” Journal of Banking & Finance 22 (6–8):1019–61. doi:10.1016/S0378-4266(98)00016-8.
  • Babicky, V. 2010. “The International Banking Crisis and Domestic Financial Intermediation in the Czech Republic.” In The Global Crisis and Financial Intermediation in Emerging Market Economies [BIS Papers No. 54], 171–79. Basel, Switzerland: Bank for International Settlements. https://www.bis.org/publ/bppdf/bispap54j.pdf
  • Behr, P., L. Norden, and F. Noth. 2013. “Financial Constraints of Private Firms and Bank Lending Behavior.” Journal of Banking & Finance 37 (9):3472–85. doi:10.1016/j.jbankfin.2013.05.018.
  • Berglund, T. 2011. “The Elusive Marginal Q.” Applied Financial Economics 21 (20):1489–93. doi:10.1080/09603107.2011.579059.
  • Bernanke, B. S., M. Gertler, and S. Gilchrist. 1999. “The Financial Accelerator in a Quantitative Business Cycle Framework.” In Handbook of Macroeconomics, edited by J. B. Taylor and M. Woodford, vol. 1, Part C, 1341–93. Amsterdam, The Netherlands: Elsevier. doi:10.1016/S1574-0048(99)10034-X.
  • Bertoni, F., A. Croce, and M. Guerini. 2015. “Venture Capital and the Investment Curve of Young High-Tech Companies.” Journal of Corporate Finance 35:159–76. doi:10.1016/j.jcorpfin.2015.08.012.
  • Biggs, M., and T. Mayer. 2013. “Bring Credit Back into the Monetary Policy Framework.” PEFM Policy Brief, St Antony’s College, University of Oxford, Oxford, UK. https://www.sant.ox.ac.uk/sites/default/files/pefmcreditpolicybrief.pdf
  • Billor, N., A. S. Hadi, and P. F. Velleman. 2000. “BACON: Blocked Adaptive Computationally Efficient Outlier Nominators.” Computational Statistics & Data Analysis 34 (3):279–98. doi:10.1016/S0167-9473(99)00101-2.
  • Blundell, R., and S. Bond. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.” Journal of Econometrics 87 (1):115–43. doi:10.1016/S0304-4076(98)00009-8.
  • Bond, S. R., and M. Söderbom. 2013. “Conditional Investment-Cash Flow Sensitivities and Financing Constraints.” Journal of the European Economic Association 11 (1):112–36. doi:10.1111/j.1542-4774.2012.01102.x.
  • Cai, J., and A. Harrison. 2011. “The Value-Added Tax Reform Puzzle.” NBER Working Paper 17532, National Bureau of Economic Research, Washington, DC. doi:10.3386/w17532.
  • Campello, M., J. R. Graham, and C. R. Harvey. 2010. “The Real Effects of Financial Constraints: Evidence from a Financial Crisis.” Journal of Financial Economics 97 (3):470–87. doi:10.1016/j.jfineco.2010.02.009.
  • Carbó-Valverde, S., F. Rodríguez-Fernández, and G. F. Udell. 2009. “Bank Market Power and SME Financing Constraints.” Review of Finance 13 (2):309–40. doi:10.1093/rof/rfp003.
  • Carpenter, R. E., and A. Guariglia. 2008. “Cash Flow, Investment, and Investment Opportunities: New Tests Using UK Panel Data.” Journal of Banking & Finance 32 (9):1894–1906. doi:10.1016/j.jbankfin.2007.12.014.
  • Chava, S., and M. R. Roberts. 2008. “How Does Financing Impact Investment? The Role of Debt Covenants.” Journal of Finance 63 (5):2085–2121. doi:10.1111/j.1540-6261.2008.01391.x.
  • Chen, H., and S. Chen. 2011. “Investment-Cash Flow Sensitivity Cannot Be a Good Measure of Financial Constraints: Evidence from the Time Series.” Journal of Financial Economics 103 (2):393–410. doi:10.1016/j.jfineco.2011.08.009.
  • Cinquegrana, G., C. Donati, and D. Sarno. 2012. “Financial Constraints and Relationship Lending in the Growth of Italian SMEs.” MPRA Paper 39825, Munich University Library, Munich, Germany. https://mpra.ub.uni-muenchen.de/39825/1/MPRA_paper_39825.pdf
  • Clarke, G. R., R. Cull, and G. Kisunko. 2012. “External Finance and Firm Survival in the Aftermath of the Crisis: Evidence from Eastern Europe and Central Asia.” Policy Research Working Paper 6050, The World Bank, Washington, DC. doi:10.1596/1813-9450-6050.
  • Colombo, M. G., A. Croce, and M. Guerini. 2012. “Is the Italian Government Effective in Relaxing the Financial Constraints of High Technology Firms?” Prometheus 30 (1):73–96. doi:10.1080/08109028.2012.673757.
  • Colombo, M. G., A. Croce, and M. Guerini. 2013. “The Effect of Public Subsidies on Firms’ Investment–Cash Flow Sensitivity: Transient or Persistent?” Research Policy 42 (9):1605–23. doi:10.1016/j.respol.2013.07.003.
  • Engel, D., and J. Stiebale. 2014. “Private Equity, Investment and Financial Constraints: Firm-Level Evidence for France and the United Kingdom.” Small Business Economics 43 (1):197–212. doi:10.1007/s11187-013-9530-8.
  • Fazzari, S. M., R. G. Hubbard, and B. C. Petersen. 1988. “Financing Constraints and Corporate Investment.” Brookings Papers on Economic Activity 19 (1):141–206. doi:10.2307/2534426.
  • Fazzari, S. M., R. G. Hubbard, and B. C. Petersen. 2000. “Financing Constraints and Corporate Investment: Response to Kaplan and Zingales.” NBER Working Paper 5462, National Bureau of Economic Research, Washington, DC. doi:10.3386/w5462.
  • Fidrmuc, J., R. Horvath, and E. Horvathova. 2010. “Corporate Interest Rates and the Financial Accelerator in the Czech Republic.” Emerging Markets Finance and Trade 46 (4):41–54. doi:10.2753/REE1540-496X460403.
  • Frait, J., S. Malovaná, and V. Tomšík. 2015. “The Interaction of Monetary and Macroprudential Policies in the Pursuit of the Central Bank’s Primary Objectives.” CNB Financial Stability Report 2014/2015, 110–20, Czech National Bank, Prague, Czech Republic. http://www.cnb.cz/en/financial_stability/fs_reports/fsr_2014-2015/fsr_2014-2015_article_i.pdf
  • Gaiotti, E. 2013. “Credit Availability and Investment: Lessons from the “Great Recession.” European Economic Review 59:212–27. doi:10.1016/j.euroecorev.2012.12.007.
  • Galuščák, K., and J. Babecký. 2009. Ad-Hoc Firm-Level Survey on Wage and Price Setting [mimeo]. Prague, Czech Republic: Czech National Bank.
  • Gertler, M., and S. Gilchrist. 1994. “Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms.” Quarterly Journal of Economics 109 (2):309–40. doi:10.2307/2118465.
  • Gilchrist, S., and C. Himmelberg. 1999. “Investment: Fundamentals and Finance.” In NBER Macroeconomics Annual 1998, edited by B. S. Bernanke and J. J. Rotemberg, vol. 13, 223–74. Cambridge, MA: MIT Press. http://www.nber.org/chapters/c11248.pdf
  • Gugler, K., and E. Peev. 2010. “Institutional Determinants of Investment-Cash Flow Sensitivities in Transition Economies.” Comparative Economic Studies 52 (1):62–81. doi:10.1057/ces.2009.11.
  • Gugler, K., D. C. Mueller, and B. B. Yurtoglu. 2004. “Marginal Q, Tobin’s Q, Cash Flow, and Investment.” Southern Economic Journal 70 (3):512–31. doi:10.2307/4135328.
  • Harrison, A. E., I. Love, and M. S. McMillan. 2004. “Global Capital Flows and Financing Constraints.” Journal of Development Economics 75 (1):269–301. doi:10.1016/j.jdeveco.2003.10.002.
  • Havranek, T., Z. Irsova, and J. Lesanovska. 2016a. “Bank Efficiency and Interest Rate Pass-Through: Evidence from Czech Loan Products.” Economic Modelling 54:153–69. doi:10.1016/j.econmod.2016.01.004.
  • Havranek, T., Z. Irsova, and J. Schwarz. 2016b. “Dynamic Elasticities of Tax Revenue: Evidence from the Czech Republic.” Applied Economics 48 (60):5866–81. doi:10.1080/00036846.2016.1186796.
  • Hobdari, B., D. C. Jones, and N. Mygind. 2009. “Capital Investment and Determinants of Financial Constraints in Estonia.” Economic Systems 33 (4):344–59. doi:10.1016/j.ecosys.2009.05.004.
  • Holton, S., M. Lawless, and F. McCann. 2012. “Firm Credit in Europe: A Tale of Three Crises.” Research Technical Paper 04/RT/12, Central Bank of Ireland, Dublin, Ireland. https://centralbank.ie/docs/default-source/publications/research-technical-papers/research-technical-paper-04rt12.pdf
  • Hovakimian, G. 2009. “Determinants of Investment Cash Flow Sensitivity.” Financial Management 38 (1):161–83. doi:10.1111/fima.2009.38.issue-1.
  • Hovakimian, G., and S. Titman. 2006. “Corporate Investment with Financial Constraints: Sensitivity of Investment to Funds from Voluntary Asset Sales.” Journal of Money, Credit and Banking 38 (2):357–74. doi:10.1353/mcb.2006.0034.
  • Julio, B., and Y. Yook. 2012. “Political Uncertainty and Corporate Investment Cycles.” Journal of Finance 67 (1):45–83. doi:10.1111/j.1540-6261.2011.01707.x.
  • Kaplan, S. N., and L. Zingales. 1997. “Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?” Quarterly Journal of Economics 112 (1):169–215. doi:10.1162/003355397555163.
  • Kaplan, S. N., and L. Zingales. 2000. “Investment-Cash Flow Sensitivities Are Not Valid Measures of Financing Constraints.” Quarterly Journal of Economics 115 (2):707–12. doi:10.1162/003355300554782.
  • Keasey, K., and R. Watson. 1991. “The State of the Art of Small Firm Failure Prediction: Achievements and Prognosis.” International Small Business Journal 9 (4):11–29. doi:10.1177/026624269100900401.
  • Konings, J., M. Rizov, and H. Vandenbussche. 2003. “Investment and Financial Constraints in Transition Economies: Micro Evidence from Poland, the Czech Republic, Bulgaria and Romania.” Economics Letters 78 (2):253–58. doi:10.1016/S0165-1765(02)00210-0.
  • Love, I. 2003. “Financial Development and Financing Constraints: International Evidence from the Structural Investment Model.” Review of Financial Studies 16 (3):765–91. doi:10.1093/rfs/hhg013.
  • Lízal, L., and J. Svejnar. 2002. “Investment, Credit Rationing, and the Soft Budget Constraint: Evidence From Czech Panel Data.” Review of Economics and Statistics 84 (2):353–70. doi:10.1162/003465302317411596.
  • Mach, T. L., and J. D. Wolken. 2012. “Examining the Impact of Credit Access on Small Firm Survivability.” In Small Businesses in the Aftermath of the Crisis, edited by G. Calcagnini and I. Favaretto, 189–210. New York, NY: Physica-Verlag. doi:10.1007/978-3-7908-2852-8_10.
  • Mizen, P., and P. Vermeulen. 2005. “Corporate Investment and Cash Flow Sensitivity: What Drives the Relationship?” ECB Working Papers No. 485, European Central Bank, Frankfurt, Germany. https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp485.pdf
  • Moreno Badia, M., and V. Slootmaekers. 2009. “The Missing Link Between Financial Constraints and Productivity.” IMF Working Papers 09/72, International Monetary Fund, Washington, DC. doi:10.5089/9781451872194.001.
  • Moshirian, F., V. Nanda, A. Vadilyev, and B. Zhang. 2017. “What Drives Investment–Cash Flow Sensitivity Around the World? An Asset Tangibility Perspective.” Journal of Banking & Finance 77:1–17. doi:10.1016/j.jbankfin.2016.12.012.
  • Mulier, K., K. Schoors, and B. Merlevede. 2016. “Investment-Cash Flow Sensitivity and Financial Constraints: Evidence from Unquoted European SMEs.” Journal of Banking & Finance 73:182–97. doi:10.1016/j.jbankfin.2016.09.002.
  • Musso, P., and S. Schiavo. 2008. “The Impact of Financial Constraints on Firm Survival and Growth.” Journal of Evolutionary Economics 18 (2):135–49. doi:10.1007/s00191-007-0087-z.
  • Noth, F., and A. Gauselmann. 2016. “Decision-Making Power in Foreign Subsidiaries and Its Effect on Financial Constraints: An Analysis for Selected European Transition Economies on the Basis of the IWH FDI Micro Database 2013.” Eastern European Economics 54 (6):459–72. doi:10.1080/00128775.2016.1194214.
  • Oliner, S. D., and G. D. Rudebusch. 1996. “Is There a Broad Credit Channel for Monetary Policy?” Federal Reserve Bank of San Francisco Economic Review 1996 (1):3–13. http://www.frbsf.org/economic-research/files/3-13-2.pdf
  • Plašil, M., Š. Radkovský, and P. Řežábek. 2013. “Modelling Bank Loans to Non-Financial Corporations.” CNB Financial Stability Report 2012/2013, 128–36, Czech National Bank, Prague, Czech Republic. http://www.cnb.cz/en/financial_stability/fs_reports/fsr_2012-2013/fsr_2012-2013_article_v.pdf
  • Poncet, S., W. Steingress, and H. Vandenbussche. 2010. “Financial Constraints in China: Firm-Level Evidence.” China Economic Review 21 (3):411–22. doi:10.1016/j.chieco.2010.03.001.
  • Pruteanu, A. 2004. “Was There Evidence of Credit Rationing in the Czech Republic?” Eastern European Economics 42 (5):58–72. doi:10.1080/00128775.2004.11041089.
  • Stiglitz, J. E., and A. Weiss. 1981. “Credit Rationing in Markets with Imperfect Information.” American Economic Review 71 (3):393–410. doi:10.2307/1802787.
  • Weber, S. 2010. “bacon: An Effective Way to Detect Outliers in Multivariate Data Using Stata (and Mata).” Stata Journal 10 (3):331–38. http://www.stata-journal.com/sjpdf.html?articlenum=st0197.
  • Whited, T. M. 2001. “Is It Inefficient Investment that Causes the Diversification Discount?” Journal of Finance 56 (5):1667–91. doi:10.1111/0022-1082.00385.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.