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Ownership changes and access to external financing

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  • Knyazeva, Anzhela
  • Knyazeva, Diana
  • Stiglitz, Joseph

Abstract

This paper examines access to external financing in the privatization context and provides new evidence on the effects of financing constraints on performance and investment. Ownership reforms increase firms' reliance on external financing. Empirically, performance and investment changes around ownership reforms are increasing in country-level measures of access to credit. The presence of a severe prior public financing constraint contributes to stronger investment growth after privatization. Privatized enterprises do not outperform publicly owned industries, all else given. Our analyses rely on new international sector- and firm-level data and correct for potential endogeneity of ownership changes.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 33 (2009)
Issue (Month): 10 (October)
Pages: 1804-1816

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Handle: RePEc:eee:jbfina:v:33:y:2009:i:10:p:1804-1816

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Web page: http://www.elsevier.com/locate/jbf

Related research

Keywords: Privatization Ownership Access to credit Performance Investment;

References

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Citations

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Cited by:
  1. Rahaman, Mohammad M., 2011. "Access to financing and firm growth," Journal of Banking & Finance, Elsevier, Elsevier, vol. 35(3), pages 709-723, March.
  2. Knyazeva, Anzhela & Knyazeva, Diana & Stiglitz, Joseph E., 2013. "Ownership change, institutional development and performance," Journal of Banking & Finance, Elsevier, Elsevier, vol. 37(7), pages 2605-2627.
  3. Büyükkarabacak, Berrak & Valev, Neven T., 2010. "The role of household and business credit in banking crises," Journal of Banking & Finance, Elsevier, Elsevier, vol. 34(6), pages 1247-1256, June.

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