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https://hdl.handle.net/10419/17961
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DC Field | Value | Language |
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dc.contributor.author | Tomat, Gian Maria | en |
dc.date.accessioned | 2009-01-28T15:05:13Z | - |
dc.date.available | 2009-01-28T15:05:13Z | - |
dc.date.issued | 2007 | - |
dc.identifier.uri | http://hdl.handle.net/10419/17961 | - |
dc.description.abstract | The paper develops a model of firm´s investment under uncertainty with financial market imperfections and analyzes the effects of financial constraints on firm´s investment. Firm´s investment is an increasing function of the firm´s marginal q, however the investment function is characterized by an upper bound that depends on the firm´s borrowing capabilities. The firm´s marginal q is the sum of the expected value of the marginal profitability of the physical capital stock and of a positive external finance premium. In the presence of financial market imperfections the firm forms expectations about future financial conditions and these expectations raise the firm´s current marginal q. Similarly, the shadow price of firm´s debt is the sum of the interest cost of debt repayment and of a provision for external finance that depends on the firm´s expectations over future financial conditions. | en |
dc.language.iso | eng | en |
dc.publisher | |aKiel Institute for the World Economy (IfW) |cKiel | en |
dc.relation.ispartofseries | |aEconomics Discussion Papers |x2007-38 | en |
dc.subject.jel | E22 | en |
dc.subject.jel | D92 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | firm´s investment | en |
dc.subject.keyword | financial constraints | en |
dc.subject.keyword | Tobin´s marginal q | en |
dc.subject.keyword | uncertainty | en |
dc.title | Modeling the Effects of Financial Constraints on Firm´s Investment | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 558404030 | en |
dc.rights.license | http://creativecommons.org/licenses/by-nc/2.0/de/deed.en | en |
dc.identifier.repec | RePEc:zbw:ifwedp:6165 | en |
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