IDEAS home Printed from https://ideas.repec.org/p/xrs/sfbmaa/97-02.html
   My bibliography  Save this paper

Unternehmensfinanzierung, Unternehmenskontrolle und Ressourcenallokation: Was leistet das Finanzsystem?

Author

Listed:
  • Hellwig, Martin

    () (Sonderforschungsbereich 504)

Abstract

The paper reviews the literature on the role of the financial system for corporate finance and control and takes stock of our understanding of the issues. Topics covered include the information efficiency of organized markets, the significance of information efficiency for corporate control, the role of financial intermediaries, the preponderance of internal finance, and the political economy of corporate control and finance. The paper questions the standard assumption that firms are willing to trade control for finance, or that such contracts if they are made are actually maintained. The paper suggests that the pre- ponderance of internal finance and the political system's willingness to support management control over assets and retentions are the major empirical phenomenon to be explained and analysed. It argues that these phenomena turn the financial systems of developed economies from systems channeling funds from households to firms into systems channeling funds from firms with excess cash flow to firms with excess investment opportunities. Existing theories, including Jensen's free-cash-flow hypothesis, do not provide a fully satisfactory account of the allocative implications of this structure.

Suggested Citation

  • Hellwig, Martin, 1997. "Unternehmensfinanzierung, Unternehmenskontrolle und Ressourcenallokation: Was leistet das Finanzsystem?," Sonderforschungsbereich 504 Publications 97-02, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  • Handle: RePEc:xrs:sfbmaa:97-02
    Note: Financial support from the Deutsche Forschungsgemeinschaft is gratefully acknowledged.
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Börsch-Supan, Axel & Winter, Joachim, 1999. "Pension reform, savings behavior and corporate governance," Sonderforschungsbereich 504 Publications 99-48, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    2. Kichelmann, Christoph, 2004. "Von der Imitation zur Innovation: Zur Rolle des Patentrechtes für die Entwicklung der Basler Wirtschaft," Working papers 2004/03, Faculty of Business and Economics - University of Basel.
    3. Luigi Zingales, 1997. "Corporate Governance," NBER Working Papers 6309, National Bureau of Economic Research, Inc.
    4. Wolfgang Drobetz & Pascal Pensa & Markus M. Schmid, 2007. "Estimating the Cost of Executive Stock Options: evidence from Switzerland," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(5), pages 798-815, September.
    5. Börsch-Supan, Axel & Köke, Jens, 2000. "An applied econometricians' view of empirical corporate governance studies," ZEW Discussion Papers 00-17, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Lukas Menkhoff, 2010. "Eine „dienende Rolle“ für den Finanzsektor? Nicht dienen, sondern funktionieren!," Credit and Capital Markets, Credit and Capital Markets, vol. 43(2), pages 165-182.
    7. Axel Börsch-Supan & Jens Köke, 2002. "An Applied Econometricians' View of Empirical Corporate Governance Studies," German Economic Review, Verein für Socialpolitik, vol. 3(3), pages 295-326, August.
    8. Köke, Jens & Salem, Tanja, 2000. "Corporate finance and restructuring: evidence from Central and Eastern Europe," ZEW Discussion Papers 00-21, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Steiger, Max, 1998. "Institutionelle Investoren und Corporate Governance: Eine empirische Analyse," ZEW Dokumentationen 98-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    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:xrs:sfbmaa:97-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carsten Schmidt). General contact details of provider: http://edirc.repec.org/data/sfmande.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.