Document Server@UHasselt >
Research >
Research publications >

Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/8248

Title: Estimating individual cash constraints using entropy econometrics
Authors: D'ESPALLIER, Bert
Issue Date: 2005
Publisher: Edizione Scientifiche Italiane
Citation: Raffa, M. (Ed.) Entrepreneurship competitiveness and local development Proceedings of RENT XIX Conference.
Abstract: We estimate firm-specific cash-flow sensitivities of investment for a panel of manufacturing SMEs, using the generalized maximum entropy-estimator(GME). Since this estimator easily allows for slope heterogeneity, we no longer have to rely on ex-ante sample splitting, which has been common practice in this literature. The results show a wide variation in individual sensitivities in every year, demonstrating the relevance of estimating firm-specific coefficients rather than an aggregate coefficient for assumed sub-samples. On the basis of the distribution of estimated sensitivities, differences in financial profile and financing behaviour between high sensitivity firms and the remainder of the sample were analysed. The results provide evidence for the existence of financial constraints for the high sensitivity sub-sample based on financial profile, but not on the actual use of various funding sources.
Notes: 18 pag.
URI: http://hdl.handle.net/1942/8248
Category: C2
Type: Proceedings Paper
Appears in Collections: Research publications

Files in This Item:

There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.