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The role of banks in relaxing financial constraints: some evidence on the investment behavior of spanish firms

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dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorGarcía, Teresa
dc.contributor.authorOcaña Pérez de Tudela, Carlos
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economía de la Empresa
dc.date.accessioned2010-02-25T11:31:56Z
dc.date.available2010-02-25T11:31:56Z
dc.date.issued1997-06
dc.description.abstractThere is a growing body of evidence in the literature suggesting that the financial healh of a finn is likely to affect its investment behavior. This sort of capital market imperfection is often attributed to information problems that typically arise when deht and equity are diffusely held and no individual investor has an incentive to monitor the firm. We find that the neoclassical il1\'estll1ent model cannot be rejected for a sample of Spanish finns with a close bank relationship while it is r~iected for the subsample made up with the remaining firms. An augmented model incorporating horrowing constraints yields the opposite results. These results suggest that banks may play a role in alleviating capital market imperfectios in Spain. A second finding is that the effects of borrowing constraints in the augmented model vary only with the firm's cash now, but not with the asset liquidity or the tirn:'s financial health.
dc.format.mimetypeapplication/pdf
dc.identifier.urihttps://hdl.handle.net/10016/7030
dc.language.isoeng
dc.relation.ispartofseriesUC3M Working papers. Business Economics
dc.relation.ispartofseries97-52-08
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España
dc.rights.accessRightsopen access
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.ecienciaEmpresa
dc.subject.otherBorrowing constraint
dc.subject.otherInvestment
dc.subject.otherMonitoring bank
dc.titleThe role of banks in relaxing financial constraints: some evidence on the investment behavior of spanish firms
dc.typeworking paper*
dspace.entity.typePublication
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