The DOI matches its Crossref record; 20 of the 20 references it cites were found in a registry or an index.
Sources of the Financing Hierarchy for Business Investment
Abstract
What accounts for the apparent preference of firms to finance investment with internal funds? Recent theories stress information problems in capital markets, while older theories emphas ize the transactions costs of external finance. To test these competing hypotheses, the authors estimate the sensitivity of investment spend ing to internal funds across firms likely to face varying degrees of information problems and transactions costs. Several attributes are used to differentiate these firms. The results provide some support for information asymmetries as well as a source of the financing hierarc hy but indicate no significant role for transactions costs. Copyright 1992 by MIT Press.
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Cites
Theory of the firm: Managerial behavior, agency costs and ownership structure
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The Market for "Lemons": Quality Uncertainty and the Market Mechanism
Akerlof, G. A. (1970) · The Quarterly Journal of Economics · doi:10.2307/1879431 · Cited by 23,016
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
The Cost of Capital, Corporation Finance and the Theory of Investment
Miller, M. H. (1958) · American Economic Review · Cited by 14,574
Credit Rationing in Markets with Imperfect Information
Stiglitz, J. E., & Weiss, A. (1981) · Columbia University · doi:10.7916/d8v12ft1 · Cited by 12,769
Management ownership and market valuation
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Financing Constraints and Corporate Investment
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Cited by
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
The real effects of financial constraints: Evidence from a financial crisis
Campello, M., Graham, J. R., & Harvey, C. R. (2010) · Journal of Financial Economics · doi:10.1016/j.jfineco.2010.02.009 · Cited by 2,280
The Relationship between Firm Investment and Financial Status
Cleary, S. (1999) · The Journal of Finance · doi:10.1111/0022-1082.00121 · Cited by 1,430
Investment–Cash Flow Sensitivities: Constrained versus Unconstrained Firms
MOYEN, N. (2004) · The Journal of Finance · doi:10.1111/j.1540-6261.2004.00692.x · Cited by 1,041
Crowdfunding of Small Entrepreneurial Ventures
Schwienbacher, A., & Larralde, B. (2010) · SSRN Electronic Journal · doi:10.2139/ssrn.1699183 · Cited by 846
Metadata
- Authors
- Oliner, S. D., & Rudebusch, G. D.
- Venue
- The Review of Economics and Statistics
- Publisher
- JSTOR
- Published
- 1992-11
- Volume
- 74
- Issue
- 4
- Pages
- 643
- ISSN
- 0034-6535 (ISSN-L)
- OpenAlex
- W2023548612
- Cited by
- 301
- References
- 20
- FWCI
- 41.17
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.