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Measuring Firms' Financial Constraints: A Rough Guide

  • Filipe Silva

    (GEMF, University of Coimbra, Portugal)

  • Carlos Carreira


    (Faculty of Economics University of Coimbra and GEMF, Portugal)

The recent years have been prolific in terms of development of new measures of firms’ financial constraints. This paper surveys the main strategies proposed. Additionally, we discuss the key advantages and disadvantages of each measure as well as the data requirements for implementation. Finally, it provides a useful tool for researchers that intend to analyse the impact of constraints on firm behaviour.

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Article provided by Faculdade de Economia, Universidade de Coimbra in its journal Notas Económicas.

Volume (Year): (2012)
Issue (Month): 36 (December)
Pages: 23-46

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Handle: RePEc:gmf:journl:y:2012:i:36:p:23-46
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