Financial constraints and firm dynamics |
| |
Authors: | Giulio Bottazzi Angelo Secchi Federico Tamagni |
| |
Institution: | 1. Institute of Economics, Scuola Superiore Sant’Anna, Piazza Martiri della Liberta’ 33, 56127, Pisa, Italy 2. Centre d’Economie de la Sorbonne (CES), Paris School of Economics–Université Paris 1 Panthéon–Sorbonne, 106-112 Boulevard de l’H?pital, 75647, Paris Cedex 13, France
|
| |
Abstract: | This study analyzes the effect of financial constraints (FCs) on firm dynamics. We measure FCs with an official credit rating, which captures availability and cost of external resources. We find that FCs undermine average firm growth, induce anti-correlation in growth patterns and reduce the dependence of growth volatility on size. FCs are also associated with higher volatility and asymmetries in growth shock distributions, preventing young fast-growing firms especially from seizing attractive growth opportunities and further deteriorating the growth prospects of already slow-growing firms, particularly if old. The sub-diffusive nature of the growth process of constrained firms is compatible with the distinctive properties of their size distribution. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|