A Stochastic Frontier Analysis of Financing Constraints on Investment
The Case of Financial Liberalization in Taiwan
Bibliographic Data
| ID | 19418308 |
|---|---|
| Authors | Hung-Jen Wang (0000-0001-6882-8443), Hung‐Jen Wang (0000-0002-2259-9427, Institute of Economics, Academia Sinica, corresponding author) |
| Year | 2003 |
| Volume | 21 |
| Issue | 3 |
| Pages | 406-419 |
| Publication date | 2003-07-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Business and Economic Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0735-0015 • E-ISSN: 1537-2707 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1198/073500103288619016 |
| OpenAlex | W1495044645 |
| Language | EN |
| Citations received | 2 |
| References cited | 32 |
is shown that investment under financing constraints can be modeled as a one-sided deviation from a frictionless investment level, and that effects of financing constraints can be identified and quantified by imposing a distributional assumption on the effects. Panel data on Taiwanese manufacturing firms between 1989 and 1996 are used in the estimation. It is found that (1) some of the sorting criteria used in the literature do not have significant and monotonic relationships with the degrees of financing constraint, resulting in problematic sample separations, and (2) the effects of financial liberalization in Taiwan are such that the investment efficiency improved over time for a typical firm, and the improvement was particularly large for smaller firms
Econometrics · Economics · Estimation · Frontier · Information asymmetry · Internal financing · Panel data · Sorting · Corporate Finance and Governance · Financial Reporting and Valuation Research · Firm Innovation and Growth · Mathematics · Finance
Likelihood Ratio Tests for Model Selection and Non-Nested Hypotheses
Wald Criteria for Jointly Testing Equality and Inequality Restrictions
Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?
Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms
Financing Constraints and Corporate Investment
Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data
A model for technical inefficiency effects in a stochastic frontier production function for panel data
Dynamic Investment Models and the Firm's Financial Policy
Formulation and estimation of stochastic frontier production function models
Estimation of a Doubly Heteroscedastic Stochastic Frontier Cost Function
Investment and Capital Market Imperfections
| Unique citing works | 2 |
|---|---|
| Citations per year | 0.13 |
| Citation span | 2010 - 2021 (12) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |