Corporate Governance and Liquidity Constraints: A Dynamic Analysis

Bersant Hobdari, Niels Mygind, Derek C. Jones

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    Resumé

    Rich panel data for a large and representative sample of Estonian firms are used to estimate the sensitivity of access to capital to differing ownership structures. This is done through explicitly modelling firm investment behaviour in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. We estimate Euler equations derived in the presence of symmetric and quadratic adjustment costs and both debt and equity constraints. Generalized Method of Moments (GMM) estimates confirm the importance of access to capital in determining investment rates and suggest that firms owned by insiders, especially non-managerial employees, are more prone to be liquidity constrained than others.
    OriginalsprogEngelsk
    TidsskriftComparative Economic Studies
    Vol/bind52
    Udgave nummer1
    Sider (fra-til)82-103
    Antal sider22
    ISSN0888-7233
    DOI
    StatusUdgivet - 2010

    Citer dette

    @article{2f63b970208811dfa7c8000ea68e967b,
    title = "Corporate Governance and Liquidity Constraints: A Dynamic Analysis",
    abstract = "Rich panel data for a large and representative sample of Estonian firms are used to estimate the sensitivity of access to capital to differing ownership structures. This is done through explicitly modelling firm investment behaviour in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. We estimate Euler equations derived in the presence of symmetric and quadratic adjustment costs and both debt and equity constraints. Generalized Method of Moments (GMM) estimates confirm the importance of access to capital in determining investment rates and suggest that firms owned by insiders, especially non-managerial employees, are more prone to be liquidity constrained than others.",
    author = "Bersant Hobdari and Niels Mygind and Jones, {Derek C.}",
    year = "2010",
    doi = "10.1057/ces.2009.10",
    language = "English",
    volume = "52",
    pages = "82--103",
    journal = "Comparative Economic Studies",
    issn = "0888-7233",
    publisher = "Palgrave Macmillan Ltd.",
    number = "1",

    }

    Corporate Governance and Liquidity Constraints : A Dynamic Analysis. / Hobdari, Bersant; Mygind, Niels; Jones, Derek C.

    I: Comparative Economic Studies, Bind 52, Nr. 1, 2010, s. 82-103.

    Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

    TY - JOUR

    T1 - Corporate Governance and Liquidity Constraints

    T2 - A Dynamic Analysis

    AU - Hobdari, Bersant

    AU - Mygind, Niels

    AU - Jones, Derek C.

    PY - 2010

    Y1 - 2010

    N2 - Rich panel data for a large and representative sample of Estonian firms are used to estimate the sensitivity of access to capital to differing ownership structures. This is done through explicitly modelling firm investment behaviour in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. We estimate Euler equations derived in the presence of symmetric and quadratic adjustment costs and both debt and equity constraints. Generalized Method of Moments (GMM) estimates confirm the importance of access to capital in determining investment rates and suggest that firms owned by insiders, especially non-managerial employees, are more prone to be liquidity constrained than others.

    AB - Rich panel data for a large and representative sample of Estonian firms are used to estimate the sensitivity of access to capital to differing ownership structures. This is done through explicitly modelling firm investment behaviour in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. We estimate Euler equations derived in the presence of symmetric and quadratic adjustment costs and both debt and equity constraints. Generalized Method of Moments (GMM) estimates confirm the importance of access to capital in determining investment rates and suggest that firms owned by insiders, especially non-managerial employees, are more prone to be liquidity constrained than others.

    U2 - 10.1057/ces.2009.10

    DO - 10.1057/ces.2009.10

    M3 - Journal article

    VL - 52

    SP - 82

    EP - 103

    JO - Comparative Economic Studies

    JF - Comparative Economic Studies

    SN - 0888-7233

    IS - 1

    ER -