Access the full text.
Sign up today, get DeepDyve free for 14 days.
M. Boyer, M. Moreaux (1988)
Rational Rationing in Stackelberg EquilibriaQuarterly Journal of Economics, 103
David Evans, Boyan Jovanovic (1989)
An Estimated Model of Entrepreneurial Choice under Liquidity ConstraintsJournal of Political Economy, 97
Donald Morgan (2000)
Rating Banks: Risk and Uncertainty in an Opaque IndustryIO: Empirical Studies of Firms & Markets
G. Imbens, T. Lancaster (1996)
Efficient estimation and stratified samplingJournal of Econometrics, 74
Glenn R. Hubbard (1998)
‘Capital-Market Imperfections and Investment’Journal of Economic Literature, 36
Charles Hadlock, C. James (2002)
Do Banks Provide Financial SlackJournal of Finance, 57
Abhijit V. Banerjee, Esther C. Duflo, Kaivan Munshi (2003)
‘The (Mis)allocation of Capital’Journal of the European Economic Association, 1
Ari Hyytinen, Iikka Kuosa, Tuomas Takalo (2003)
‘Law or Finance? Evidence from Finland, European’Journal of Law and Economics, 16
V. Denicoló, P. Garella (1999)
Rationing in a Durable Goods Monopoly, 30
P. Klemperer, R. Gilbert (1998)
An Equilibrium Theory of RationingAntitrust: Antitrust Law & Policy
Aydoğan Alti (2001)
How Sensitive is Investment to Cash Flow When Financing is Frictionless?Corporate Finance: Capital Structure & Payout Policies
J. Wooldridge (2001)
ASYMPTOTIC PROPERTIES OF WEIGHTED M-ESTIMATORS FOR STANDARD STRATIFIED SAMPLESEconometric Theory, 17
Ari Hyytinen, Mika Pajarinen (2002)
Small Business Finance in Finland. A Descriptive Study
Douglas Diamond (1989)
Reputation Acquisition in Debt MarketsJournal of Political Economy, 97
J. Stiglitz, A. Weiss (1981)
Credit Rationing in Markets with Imperfect InformationThe American Economic Review, 71
A. Banerjee, E. Duflo, Kaivan Munshi (2003)
The (Mis)Allocation of CapitalJournal of the European Economic Association, 1
M. Petersen, R. Rajan (1994)
The Benefits of Lending Relationships: Evidence from Small Business DataJournal of Finance, 49
D. Meza, David Webb (2000)
Does credit rationing imply insufficient lendingJournal of Public Economics, 78
Heitor Almeida, Murillo Campello, M. Weisbach (2003)
The Cash Flow Sensitivity of CashNew York University Stern School of Business Research Paper Series
D. Audretsch, J. Elston (2000)
Does Firm Size Matter ? Evidence on the Impact of Liquidity Constraints of Firm Investment Behavior in Germany
A. Banerjee, E. Duflo (2004)
Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending ProgramBanking & Financial Institutions
Mitchell A. Petersen, Raghuram G. Rajan (1995)
‘The Effect of Credit Market Competition on Lending Relationships’Quarterly Journal of Economics, 110
P. Chiappori, B. Salanié (2000)
Testing for Asymmetric Information in Insurance MarketsJournal of Political Economy, 108
Jeffrey M. Wooldridge (2002)
Econometric Analysis of Cross Section and Panel Data
Luís M. B. Cabral, José Mata (2003)
‘On the Evolution of the Firm Size Distribution: Facts and Theory’American Economic Review, 93
R. Hubbard (1997)
Capital-Market Imperfections and InvestmentCorporate Finance: Valuation
Samuel Kortum, J. Lerner (2000)
Assessing the Contribution of Venture Capital to InnovationThe RAND Journal of Economics, 31
J. Wooldridge (2003)
Solutions Manual and Supplementary Materials for Econometric Analysis of Cross Section and Panel Data
R. Cressy, O. Toivanen (2001)
Is there adverse selection in the credit market?Venture Capital, 3
Heitor Almeida, Campello Murillo, Michael S. Weisbach (2004)
‘The Cash Flow Sensitivity of Cash”Journal of Finance, 59
Malcolm Baker, Jeffrey Wurgler, J. Stein (2001)
When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent FirmsBehavioral & Experimental Finance
Lawrence Ausubel (1999)
Adverse Selection in the Credit Card Market
Helmut Bester, Martin F. Hellwig (1987)
Agency Theory, Information And Incentives
(2002)
The Financing of Research and Development
Aydogan Alti (2003)
‘How Sensitive is Investment to Cash Flow When Financing is Frictionless?’Journal of Finance, 58
Allen N. Berger, Gregory F. Udell (1998)
‘The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth cycle’Journal of Banking and Finance, 22
Jeffrey M. Wooldridge (1997)
Handbook of Applied Econometrics, Volume II: Microeconomics
(2001)
Agency, Information and Corporate Investment
M. Hellwig, H. Bester, G. Bamberg, K. Spremann (1987)
Moral Hazard and Equilibrium Credit Rationing: An Overview of the Issues
G. Dionne, C. Gouriéroux, C. Vanasse (2001)
Testing for Evidence of Adverse Selection in the Automobile Insurance Market: A CommentJournal of Political Economy, 109
Jeremy C. Stein (2003)
Handbook of Economics and Finance
Ari Hyytinen, I. Kuosa, T. Takalo (2002)
Law of Finance: Evidence from FinlandBank of Finland Research Paper Series
E. Kasanen, J. Kinnunen, J. Niskanen (1996)
Dividend-based earnings management: Empirical evidence from FinlandJournal of Accounting and Economics, 22
Malcolm Baker, Jeremy Stein, Jeffrey Wurgler (2003)
‘When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms’Quarterly Journal of Economics, 118
Luís Cabral, J. Mata (2001)
On the Evolution of the Firm Size Distribution: Facts and TheoryCEPR Discussion Paper Series
Allen Berger, Gregory Udell (1998)
The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth CycleEntrepreneurship & Finance eJournal
M. Petersen, R. Rajan (1994)
The Effect of Credit Market Competition on Lending RelationshipsBanking & Financial Institutions
L. Guiso, Paola Sapienza, Luigi Zingales (2002)
Does Local Financial Development Matter?NBER Working Paper Series
P. Trivedi (1998)
Regression Analysis of Count Data
Robert Carpenter, Bruce Petersen (2002)
Is the Growth of Small Firms Constrained by Internal Finance?Review of Economics and Statistics, 84
D. Meza, David Webb (1987)
Too Much Investment: A Problem of Asymmetric InformationQuarterly Journal of Economics, 102
Despite the voluminous and growing literature on financial constraints, the origins of the constraints are hardly ever empirically analyzed. This paper offers such an analysis. We study, in particular, the empirical prevalence of adverse selection and moral hazard in capital markets using a unique survey data on Finnish small and medium-sized enterprises (SMEs). The survey data suggest that adverse selection is empirically more prevalent than moral hazard in the capital markets that the SMEs face. We also find that of the variables indicating the presence of adverse selection and moral hazard, the former has more explanatory power in regressions modeling the availability of external finance to the SMEs than the latter. Finally, we document that our proxies for adverse selection and moral hazard are inversely related to the age of firms, just like Peter Diamond’s (1989) model predicts.
Small Business Economics – Springer Journals
Published: Jul 7, 2005
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.