Financial constraints: Are there differences between manufacturing and services?
AbstractThis paper is the first to explicitly explore the differences in firms' financial constraints between and within sectors of economic activity, by estimating the sensitivities of cash holdings to cash-flow upon an unique dataset of Portuguese firms. It shows that, not only there are remarkable differences between sectors and, especially, industries, but most importantly, that the commonly accepted inverse relationships between financial constraints and size and age are not robust to sectorial disaggregation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2010-16.
Length: 36 pages
Date of creation: Jul 2010
Date of revision:
Services; Financial constraints; Firm-level studies; Portugal.;
Find related papers by JEL classification:
- L8 - Industrial Organization - - Industry Studies: Services
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L00 - Industrial Organization - - General - - - General
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giulio Bottazzi & Angelo Secchi & Federico Tamagni, 2008.
"Productivity, profitability and financial performance,"
Industrial and Corporate Change,
Oxford University Press, vol. 17(4), pages 711-751, August.
- Giulio Bottazzi & Angelo Secchi & Federico Tamagni, 2006. "Productivity, Profitability and Financial Fragility: Evidence from Italian Business Firms," LEM Papers Series 2006/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Kaplan, Steven N & Zingales, Luigi, 1997. "Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 169-215, February.
- Audretsch, D.B. & Klomp, L. & Thurik, A.R., 2002.
"Gibrat's Law: are the services different?,"
ERIM Report Series Research in Management
ERS-2002-04-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Martin Kukuk & Manfred Stadler, 2000.
"Financing Constraints and the Timing of Innovations in the German Services Sector,"
Econometric Society World Congress 2000 Contributed Papers
0893, Econometric Society.
- Martin Kukuk & Manfred Stadler, 2001. "Financing Constraints and the Timing of Innovations in the German Services Sector," Empirica, Springer, vol. 28(3), pages 277-292, September.
- Kukuk, Martin & Stadler, Manfred, 1999. "Financing constraints and the timing of innovations in the German services sector," TÃ¼binger DiskussionsbeitrÃ¤ge 159, University of Tübingen, School of Business and Economics.
- Konings, Jozef & Rizov, Marian & Vandenbussche, Hylke, 2003. "Investment and financial constraints in transition economies: micro evidence from Poland, the Czech Republic, Bulgaria and Romania," Economics Letters, Elsevier, vol. 78(2), pages 253-258, February.
- Budina, Nina & Garretsen, Harry & de Jong, Elke, 2000. "Liquidity constraints and investment in transition economies - the case of Bulgaria," Policy Research Working Paper Series 2278, The World Bank.
- R. Piergiovanni & E. Santarelli & L. Klomp & A.R. Thurik, 2002. "Gibrat's Law and the Firm Size / Firm Growth Relationship in Italian Services," Tinbergen Institute Discussion Papers 02-080/3, Tinbergen Institute.
- Yi-Chen Lin, 2007. "The cash flow sensitivity of cash: evidence from Taiwan," Applied Financial Economics, Taylor & Francis Journals, vol. 17(12), pages 1013-1024.
- Francesca Lotti & Enrico Santarelli & Marco Vivarelli, 2001. "The relationship between size and growth: the case of Italian newborn firms," Applied Economics Letters, Taylor & Francis Journals, vol. 8(7), pages 451-454.
- Aydogan Alti, 2003. "How Sensitive Is Investment to Cash Flow When Financing Is Frictionless?," Journal of Finance, American Finance Association, vol. 58(2), pages 707-722, 04.
- Flora Bellone & Patrick Musso & Lionel Nesta & Michel Qu�r�, 2008. "Market selection along the firm life cycle," Industrial and Corporate Change, Oxford University Press, vol. 17(4), pages 753-777, August.
- Heitor Almeida & Murillo Campello & Michael S. Weisbach, 2004. "The Cash Flow Sensitivity of Cash," Journal of Finance, American Finance Association, vol. 59(4), pages 1777-1804, 08.
- Carlos Carreira & Filipe Silva, 2012.
"Where Are The Fragilities? The Relationship Between Firms' Financial Constraints, Size, And Age,"
Institute of Economic Sciences.
- Carlos Carreira & Filipe Silva, 2012. "Where Are the Fragilities? The Relationship Between Firms' Financial Constraints, Size, and Age," GEMF Working Papers 2012-12, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Daniela Rodica Silivestru(Popescu), 2012. "Bank Loans And Small Firm Financing In Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 15.
- Filipe Silva & Carlos Carreira, 2012. "Financial Constraints: Do They Matter to R&D Subsidy Attribution?," GEMF Working Papers 2012-18, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Afandi, Elvin & Kermani, Majid, 2013. "What Determines Firms’ Innovation in Eastern Europe and Central Asia," MPRA Paper 53255, University Library of Munich, Germany.
- Filipe Silva & Carlos Carreira, 2012.
"Measuring Firms' Financial Constraints: A Rough Guide,"
GEMF Working Papers
2012-14, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Filipe Silva & Carlos Carreira, 2012. "Measuring Firms' Financial Constraints: A Rough Guide," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 36, pages 23-46, December.
- Filipe Silva & Carlos Carreira, 2012.
"Do financial constraints threat the innovation process? Evidence from Portuguese firms,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 21(8), pages 701-736, November.
- Filipe Silva & Carlos Carreira, 2011. "Do financial constraints threat the innovation process? Evidence from Portuguese firms," GEMF Working Papers 2011-10, GEMF - Faculdade de Economia, Universidade de Coimbra, revised Oct 2011.
- Georgios Efthyvoulou & Priit Vahter, 2012. "Financial Constraints, Innovation Performance, and Sectoral Disaggregation," Working Papers 2012030, The University of Sheffield, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Santos).
If references are entirely missing, you can add them using this form.