Please use this identifier to cite or link to this item:
http://hdl.handle.net/1942/8244
Title: | Investment-sensitivities or cash-sensitivities? An evaluative framework for measures of financial constraints | Authors: | D'ESPALLIER, Bert | Issue Date: | 2007 | Source: | EFA Doctoral tutorial, Ljubljana. | Abstract: | We evaluate two models commonly used for measuring financial constraints in their ability to discriminate between constrained and unconstrained firms. We compute firm-specific estimates for the cash flow sensitivity of investment (CFSI), and the cash flow sensitivity of cash (CFSC) and provide a framework that summarizes the performance of each model into a single numerical metric. We argue that this ex-post approach provides interesting advantages over the traditional operationalization, in which firms are classified ex-ante on a theoretical basis. Our findings suggest the superiority of the CFSI model over the CFSC model for a sample of manufacturing SMEs in Belgium. | Document URI: | http://hdl.handle.net/1942/8244 | Category: | C2 | Type: | Conference Material |
Appears in Collections: | Research publications |
Show full item record
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.