RT Generic
T1 The role of banks in relaxing financial constraints: some evidence on the investment behavior of spanish firms
A1 García, Teresa
A1 Ocaña Pérez de Tudela, Carlos
A2 Universidad Carlos III de Madrid. Departamento de Economía de la Empresa, 
AB There is a growing body of evidence in the literature suggesting that the financial healh of a finn is likely toaffect its investment behavior. This sort of capital market imperfection is often attributed to informationproblems that typically arise when deht and equity are diffusely held and no individual investor has an incentiveto monitor the firm. We find that the neoclassical il1\'estll1ent model cannot be rejected for a sample of Spanishfinns 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 thatbanks may play a role in alleviating capital market imperfectios in Spain. A second finding is that the effectsof borrowing constraints in the augmented model vary only with the firm's cash now, but not with the assetliquidity or the tirn:'s financial health.
YR 1997
FD 1997-06
LK https://hdl.handle.net/10016/7030
UL https://hdl.handle.net/10016/7030
LA eng
DS e-Archivo
RD 1 may. 2024