The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index
Abstract
We collect detailed qualitative information from financial filings to categorize financial constraints for a random sample of firms from 1995 to 2004. Using this categorization, we estimate ordered logit models predicting constraints as a function of different quantitative factors. Our findings cast serious doubt on the validity of the KZ index as a measure of financial constraints, while offering mixed evidence on the validity of other common measures of constraints. We find that firm size and age are particularly useful predictors of financial constraint levels, and we propose a measure of financial constraints that is based solely on these firm characteristics.
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Citations
Cites
Financing Constraints and Corporate Investment
Fazzari, S. M., Hubbard, R. G., Petersen, B. C., Blinder, A. S., & Poterba, J. M. (1988) · Brookings Papers on Economic Activity · doi:10.2307/2534426 · Cited by 5,574
Monetary policy, business cycles, and the behavior of small manufacturing firms
Gertler, M., & Gilchrist, S. (1994) · The Quarterly Journal of Economics · doi:10.2307/2118465 · Cited by 2,547
Commercial paper, corporate finance and the business cycle: A microeconomic perspective
Calomiris, C. W., Himmelberg, C. P., & Wachtel, P. (1995) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/0167-2231(95)00034-w · Cited by 269
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Corporate social responsibility and access to finance
Cheng, B., Ioannou, I., & Serafeim, G. (2014) · Strategic Management Journal · doi:10.1002/smj.2131 · Cited by 3,896
LEUZ, C., & WYSOCKI, P. D. (2016) · Journal of Accounting Research · doi:10.1111/1475-679x.12115 · Cited by 1,760
Does banking competition affect innovation?
Cornaggia, J., Mao, Y., Tian, X., & Wolfe, B. (2015) · Journal of Financial Economics · doi:10.1016/j.jfineco.2014.09.001 · Cited by 1,051
Do financing constraints matter for R&D?
Brown, J. R., Martinsson, G., & Petersen, B. C. (2012) · European Economic Review · doi:10.1016/j.euroecorev.2012.07.007 · Cited by 811
Hsu, P.-H., Li, K., & Tsou, C.-Y. (2020) · SSRN Electronic Journal · doi:10.2139/ssrn.3578215 · Cited by 665
Metadata
- Authors
- Hadlock, C. J., & Pierce, J. R.
- Venue
- Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2010-03-01
- Volume
- 23
- Issue
- 5
- Pages
- 1909-1940
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W1991428446
- Cited by
- 5,533
- References
- 3
- FWCI
- 243.10
- Type
- journal article
- Language
- en
- Open access
- closed
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