380
Views
5
CrossRef citations to date
0
Altmetric
Articles

M&As, Investment and Financing Constraints

&

References

  • Alfaro, L., and M. X. Chen. 2012. “Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance.” American Economic Journal: Economic Policy 4 (3): 30–55. doi: 10.1257/pol.4.3.30.
  • Almeida, H., and M. Campello. 2007. “Financial Constraints, Asset Tangibility, and Corporate Investment.” Review of Financial Studies 20 (5): 1429–1460. doi: 10.1093/rfs/hhm019.
  • Almeida, H., M. Campello, and M. S. Weisbach. 2004. “The Cash Flow Sensitivity of Cash.” The Journal of Finance 59 (4): 1777–1804. doi: 10.1111/j.1540-6261.2004.00679.x.
  • Alquist, R., R. Mukherjee, and L. L. Tesar. 2014. Liquidity-Driven FDI. Working paper. No. 17, Graduate Institute of International and Development Studies.
  • Amess, K., J. Stiebale, and M. Wright. 2016. “The Impact of Private Equity on Firms Patenting Activity.” European Economic Review 86: 147–160. doi: 10.1016/j.euroecorev.2015.08.013.
  • Arkolakis, C., N. Ramondo, A. Rodríguez-Clare, and S. Yeaple. 2018. “Innovation and Production in the Global Economy.” American Economic Review 108 (8): 2128–2173. doi: 10.1257/aer.20141743.
  • Arnold, J. M., and B. S. Javorcik. 2009. “Gifted Kids or Pushy Parents? Foreign Direct Investment and Plant Productivity in Indonesia.” Journal of International Economics 79 (1): 42–53. doi: 10.1016/j.jinteco.2009.05.004.
  • Ashenfelter, O., D. Hosken, and M. Weinberg. 2014. “Did Robert Bork Understate the Competitive Impact of Mergers? Evidence from Consummated Mergers.” The Journal of Law and Economics 57 (S3): S67–S100. doi: 10.1086/675862.
  • Behr, P., L. Norden, and F. Noth. 2013. “Financial Constraints of Private Firms and Bank Lending Behavior.” Journal of Banking & Finance 37 (9): 3472–3485. doi: 10.1016/j.jbankfin.2013.05.018.
  • Bellone, F., P. Musso, L. Nesta, and S. Schiavo. 2010. “Financial Constraints and Firm Export Behaviour.” World Economy 33 (3): 347–373. doi: 10.1111/j.1467-9701.2010.01259.x.
  • Blonigen, B. A., L. Fontagné, N. Sly, and F. Toubal. 2014. “Cherries for Sale: The Incidence and Timing of Cross-Border M&A.” Journal of International Economics 94 (2): 341–357. doi: 10.1016/j.jinteco.2014.08.005.
  • Bloom, N., and J. van Reenen. 2010. “Why Do Management Practices Differ across Firms and Countries?” Journal of Economic Perspectives 24 (1): 203–224. doi: 10.1257/jep.24.1.203.
  • Blundell, R., and M. Costa Dias. 2005. “Evaluation Methods for Non-Experimental Data.” Fiscal Studies 21 (4): 427–468. doi: 10.1111/j.1475-5890.2000.tb00031.x.
  • Bond, S. R., and M. Söderbom. 2013. “Conditional Investment-Cash Flow Sensitivities and Financing Constraints.” Journal of the European Economic Association 11 (1): 112–136. doi: 10.1111/j.1542-4774.2012.01102.x.
  • Boucly, Q., D. Sraer, and D. Thesmar. 2011. “Growth LBOs.” Journal of Financial Economics 102 (2): 432–453. doi: 10.1016/j.jfineco.2011.05.014.
  • Braguinsky, S., A. Ohyama, T. Okazaki, and C. Syverson. 2015. “Acquisitions, Productivity, and Profitability: Evidence from the Japanese Cotton Spinning Industry.” American Economic Review 105 (7): 2086–2119. doi: 10.1257/aer.20140150.
  • Bridges, S., and A. Guariglia. 2008. “Financial Constraints, Global Engagement, and Firm Survival in the United Kingdom: Evidence from Micro Data.” Scottish Journal of Political Economy 55 (4): 444–464. doi: 10.1111/j.1467-9485.2008.00461.x.
  • Brown, J. R., S. M. Fazzari, and B. C. Petersen. 2009. “Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom.” The Journal of Finance 64 (1): 151–185. doi: 10.1111/j.1540-6261.2008.01431.x.
  • Brown, J. R., G. Martinsson, and B. C. Petersen. 2012. “Do Financing Constraints Matter for R&D?” European Economic Review 56 (8): 1512–1529. doi: 10.1016/j.euroecorev.2012.07.007.
  • Carpenter, R. E., and B. C. Petersen. 2002. “Is the Growth of Small Firms Constrained by Internal Finance?” Review of Economics and Statistics 84 (2): 298–309. doi: 10.1162/003465302317411541.
  • Chen, W. 2011. “The Effect of Investor Origin on Firm Performance: Domestic and Foreign Direct Investment in the United States.” Journal of International Economics 83 (2): 219–228. doi: 10.1016/j.jinteco.2010.11.005.
  • Chodorow-Reich, G. 2014. “The Employment Effects of Credit Market Disruptions: Firm-Level Evidence from the 2008–9 Financial Crisis.” The Quarterly Journal of Economics 129 (1): 1–59. doi: 10.1093/qje/qjt031.
  • Cleary, S., P. Povel, and M. Raith. 2007. “The U-Shaped Investment Curve: Theory and Evidence.” Journal of Financial and Quantitative Analysis 42 (1): 1–39. doi: 10.1017/S0022109000002179.
  • David, J. 2013. The Aggregate Implications of Mergers and Acquisitions. Research Paper No. 14.02, Center for Applied Financial Economics.
  • Desai, M. A., C. F. Foley, and K. J. Forbes. 2008. “Financial Constraints and Growth: Multinational and Local Firm Responses to Currency Depreciations.” Review of Financial Studies 21 (6): 2857–2888. doi: 10.1093/rfs/hhm017.
  • Duchin, R., O. Ozbas, and B. A. Sensoy. 2010. “Costly External Finance, Corporate Investment, and the Subprime Mortgage Credit Crisis.” Journal of Financial Economics 97 (3): 418–435. doi: 10.1016/j.jfineco.2009.12.008.
  • Ekholm, K., and K. Hakkala. 2007. “Location of R&D and High-Tech Production by Vertically Integrated Multinationals.” The Economic Journal 117 (518): 512–543. doi: 10.1111/j.1468-0297.2007.02028.x.
  • Erel, I., Y. Jang, and M. S. Weisbach. 2015. “Do Acquisitions Relieve Target Firms’ Financial Constraints?” The Journal of Finance 70 (1): 289–328. doi: 10.1111/jofi.12155.
  • Erickson, T., and T. M. Whited. 2000. “Measurement Error and the Relationship between Investment and q.” Journal of Political Economy 108 (5): 1027–1057. doi: 10.1086/317670.
  • Fazzari, S. M., R. G. Hubbard, B. C. Petersen, A. S. Blinder, and J. M. Poterba. 1988. “Financing Constraints and Corporate Investment.” Brookings Papers on Economic Activity 1988 (1): 141–206. doi: 10.2307/2534426.
  • Flannery, M. J., S. H. Kwan, and M. Nimalendran. 2013. “The 2007–2009 Financial Crisis and Bank Opaqueness.” Journal of Financial Intermediation 22 (1): 55–84. doi: 10.1016/j.jfi.2012.08.001.
  • Fons-Rosen, C., S. Kalemli-Ozcan, B. E. Sørensen, C. Villegas-Sanchez, and V. Volosovych. 2013. Quantifying productivity gains from foreign investment. NBER Working Paper No. 18920, National Bureau of Economic Research.
  • Gomes, J. F. 2001. “Financing Investment.” American Economic Review 91 (5): 1263–1285. doi: 10.1257/aer.91.5.1263.
  • Guadalupe, M., O. Kuzmina, and C. Thomas. 2012. “Innovation and Foreign Ownership.” American Economic Review 102 (7): 3594–3627. doi: 10.1257/aer.102.7.3594.
  • Guariglia, A., and S. Mateut. 2010. “Inventory Investment, Global Engagement, and Financial Constraints in the UK: Evidence from Micro Data.” Journal of Macroeconomics 32 (1): 239–250. doi: 10.1016/j.jmacro.2009.03.001.
  • Gugler, K., D. C. Mueller, B. B. Yurtoglu, and C. Zulehner. 2003. “The Effects of Mergers: An International Comparison.” International Journal of Industrial Organization 21 (5): 625–653. doi: 10.1016/S0167-7187(02)00107-8.
  • Hadlock, C. J., and J. R. Pierce. 2010. “New Evidence on Measuring Financial Constraints: Moving beyond the KZ Index.” Review of Financial Studies 23 (5): 1909–1940. doi: 10.1093/rfs/hhq009.
  • Harrison, A. E., and M. S. McMillan. 2003. “Does Direct Foreign Investment Affect Domestic Credit Constraints?.” Journal of International Economics 61 (1): 73–100. doi: 10.1016/S0022-1996(02)00078-8.
  • Helpman, E., M. J. Melitz, and S. R. Yeaple. 2004. “Export versus FDI with Heterogeneous Firms.” American Economic Review 94 (1): 300–316. doi: 10.1257/000282804322970814.
  • Hennessy, C. A., and T. M. Whited. 2007. “How Costly Is External Financing? Evidence from a Structural Estimation.” The Journal of Finance 62 (4): 1705–1745. doi: 10.1111/j.1540-6261.2007.01255.x.
  • Hsu, P.-H., X. Tian, and Y. Xu. 2014. “Financial Development and Innovation: Cross-Country Evidence.” Journal of Financial Economics 112 (1): 116–135. doi: 10.1016/j.jfineco.2013.12.002.
  • Javorcik, B., and S. Poelhekke. 2017. “Former Foreign Affiliates: Cast out and Outperformed?.” Journal of the European Economic Association 15 (3): 501–539. doi: 10.1093/jeea/jvw010.
  • Jensen, M. C. 1986. “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers.” American Economic Review 76 (2): 323–329.
  • Jensen, M. C., and W. H. Meckling. 1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.” Journal of Financial Economics 3 (4): 305–360. doi: 10.1016/0304-405X(76)90026-X.
  • Kaplan, S. N., and L. Zingales. 1997. “Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?.” The Quarterly Journal of Economics 112 (1): 169–215. doi: 10.1162/003355397555163.
  • Keynes, J. M. 1936. The General Theory of Employment, Interest, and Money. London: Macmillan.
  • Khurana, I. K., X. Martin, and R. Pereira. 2006. “Financial Development and the Cash Flow Sensitivity of Cash.” Journal of Financial and Quantitative Analysis 41 (4): 787–807. doi: 10.1017/S0022109000002647.
  • Kim, C.-S., D. C. Mauer, and A. E. Sherman. 1998. “The Determinants of Corporate Liquidity: Theory and Evidence.” The Journal of Financial and Quantitative Analysis 33 (3): 335–359. doi: 10.2307/2331099.
  • Maksimovic, V., and G. Phillips. 2001. “The Market for Corporate Assets: Who Engages in Mergers and Asset Sales and Are There Efficiency Gains?.” The Journal of Finance 56 (6): 2019–2065. doi: 10.1111/0022-1082.00398.
  • Markusen, J. R. 2002. Multinational Firms and the Theory of International Trade. Cambridge, MA: The MIT Press.
  • Myers, S. C., and N. S. Majluf. 1984. “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have.” Journal of Financial Economics 13 (2): 187–221. doi: 10.1016/0304-405X(84)90023-0.
  • Neary, J. P. 2007. “Cross-Border Mergers as Instruments of Comparative Advantage.” The Review of Economic Studies 74 (4): 1229–1257. doi: 10.1111/j.1467-937X.2007.00466.x.
  • Nocke, V., and S. Yeaple. 2007. “Cross-Border Mergers and Acquisitions vs. Greenfield Foreign Direct Investment: The Role of Firm Heterogeneity.” Journal of International Economics 72 (2): 336–365. doi: 10.1016/j.jinteco.2006.09.003.
  • Nocke, V., and S. Yeaple. 2008. “An Assignment Theory of Foreign Direct Investment.” Review of Economic Studies 75 (2): 529–557. doi: 10.1111/j.1467-937X.2008.00480.x.
  • Olley, G. S., and A. Pakes. 1996. “The Dynamics of Productivity in the Telecommunications Equipment Industry.” Econometrica 64 (6): 1263–1297. doi: 10.2307/2171831.
  • Opler, T., L. Pinkowitz, R. Stulz, and R. Williamson. 1999. “The Determinants and Implications of Corporate Cash Holdings.” Journal of Financial Economics 52 (1): 3–46. doi: 10.1016/S0304-405X(99)00003-3.
  • Ouyang, M. 2011. “On the Cyclicality of R&D.” The Review of Economics and Statistics 93 (2): 542–553.
  • Riddick, L. A., and T. M. Whited. 2009. “The Corporate Propensity to Save.” The Journal of Finance 64 (4): 1729–1766. doi: 10.1111/j.1540-6261.2009.01478.x.
  • Rosenbaum, P. R., and D. B. Rubin. 1983. “The Central Role of the Propensity Score in Observational Studies for Causal Effects.” Biometrika 70 (1): 41–55. doi: 10.2307/2335942.
  • Seru, A. 2014. “Firm Boundaries Matter: Evidence from Conglomerates and R&D Activity.” Journal of Financial Economics 111 (2): 381–405.
  • Stiglitz, J. E., and A. Weiss. 1981. “Credit Rationing in Markets with Imperfect Information.” American Economic Review 71 (3): 393–410.
  • Wang, J., and X. Wang. 2015. “Benefits of Foreign Ownership: Evidence from Foreign Direct Investment in China.” Journal of International Economics 97 (2): 325–338. doi: 10.1016/j.jinteco.2015.07.006.
  • Williamson, O. E. 1975. Markets and Hierarchies. New York: Free Press.
  • Williamson, O. E. 1985. The Economic Institutions of Capitalism. New York: Free Press.
  • Wooldridge, J. M. 2009. “On Estimating Firm-Level Production Functions Using Proxy Variables to Control for Unobservables.” Economics Letters 104 (3): 112–114. doi: 10.1016/j.econlet.2009.04.026.

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.