| dc.creator |
Tomat, Gian Maria |
|
| dc.date |
2007 |
|
| dc.date.accessioned |
2013-10-16T06:57:35Z |
|
| dc.date.available |
2013-10-16T06:57:35Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
http://hdl.handle.net/10419/17961 |
|
| dc.identifier |
ppn:558404030 |
|
| dc.identifier |
RePEc:zbw:ifwedp:6165 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/17961 |
|
| dc.description |
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. |
|
| dc.language |
eng |
|
| dc.publisher |
Kiel Institute for the World Economy (IfW) Kiel |
|
| dc.relation |
Economics Discussion Papers / Institut für Weltwirtschaft 2007-38 |
|
| dc.rights |
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en |
|
| dc.subject |
E22 |
|
| dc.subject |
D92 |
|
| dc.subject |
ddc:330 |
|
| dc.subject |
firm´s investment |
|
| dc.subject |
financial constraints |
|
| dc.subject |
Tobin´s marginal q |
|
| dc.subject |
uncertainty |
|
| dc.title |
Modeling the Effects of Financial Constraints on Firm´s Investment |
|
| dc.type |
doc-type:workingPaper |
|