The Dynamics of External Financing

Joakim Jansson ()
Additional contact information
Joakim Jansson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

No 2000:8, Working Paper Series from Uppsala University, Department of Economics

Abstract: A dynamic process underlying firms' discrete financial choices has previously been found, but without controlling for unobserved heterogeneity, this dependence can either be of a "true" nature or an effect of firm-specific characteristics that we cannot observe. This study extends previous research focusing on firms' discrete external financing decision by adapting a model by Honoré and Kyriazidou (2000), which accommodates both fixed effects and a lagged dependent variable, which makes it possible to establish the nature of the dependence. We find that there is a smoothing of financing, even after controlling for unobserved heterogeneity, and also that unobserved heterogeneity plays a significant explanatory role.

Keywords: Corporate finance; Discrete choice; State dependence (search for similar items in EconPapers)
JEL-codes: C25 C32 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2000-08-07
New Economics Papers: this item is included in nep-dcm and nep-fin
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.nek.uu.se/pdf/2000wp8.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.nek.uu.se/pdf/2000wp8.pdf [301 Moved Permanently]--> https://www.nek.uu.se/pdf/2000wp8.pdf [301 Moved Permanently]--> https://www.uu.se/institution/nationalekonomiska/pdf/2000wp8.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2000_008

Access Statistics for this paper

More papers in Working Paper Series from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ulrika Öjdeby ().