IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v74y1992i4p643-54.html
   My bibliography  Save this article

Sources of the Financing Hierarchy for Business Investment

Author

Listed:
  • Oliner, Stephen D
  • Rudebusch, Glenn D

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.

Suggested Citation

  • Oliner, Stephen D & Rudebusch, Glenn D, 1992. "Sources of the Financing Hierarchy for Business Investment," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 643-654, November.
  • Handle: RePEc:tpr:restat:v:74:y:1992:i:4:p:643-54
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0034-6535%28199211%2974%3A4%3C643%3ASOTFHF%3E2.0.CO%3B2-E&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:74:y:1992:i:4:p:643-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.