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.
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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:
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Services; Financial constraints; Firm-level studies; Portugal.;
Find related papers by JEL classification:
- L8 - Industrial Organization - - Industry Studies: Services
- D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
- 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
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