Corporate Governance and Liquidity Constraints: A Dynamic Analysis

Bersant Hobdari, Derek Jones and Niels Mygind
Additional contact information
Bersant Hobdari: International Economics and Management, Copenhagen Business School, Porcelanshaven 24 A, Frederiksberg, 2000, Denmark
Niels Mygind: International Economics and Management, Copenhagen Business School, Porcelanshaven 24 A, Frederiksberg, 2000, Denmark

Comparative Economic Studies, 2010, vol. 52, issue 1, 82-103

Abstract: Rich panel data for a large and representative sample of Estonian firms are used to estimate the sensitivity of access to capital to differing ownership structures. This is done through explicitly modelling firm investment behaviour in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. We estimate Euler equations derived in the presence of symmetric and quadratic adjustment costs and both debt and equity constraints. Generalized Method of Moments (GMM) estimates confirm the importance of access to capital in determining investment rates and suggest that firms owned by insiders, especially non-managerial employees, are more prone to be liquidity constrained than others.

Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/ces/journal/v52/n1/pdf/ces200910a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/ces/journal/v52/n1/full/ces200910a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:compes:v:52:y:2010:i:1:p:82-103

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().