Brief description
Financial constraints arise due to frictions in the supply of capital, which are mainly due to information asymmetries between investors and the firm (Tirole, 2006), decreasing the elasticity of the supply of external capital curve, and driving a wedge between the internal and the external cost of capital. In the limit, a perfectly inelastic (i.e., vertical) supply curve implies that the firm “has been cut out of its usual source of credit” (Kaplan and Zingales, 1997). Empirical evidence suggest that the probability of being under financial constraint depends on a firm’s age and size (Hyytinen and Väänänen, 2006; Schneider and Veugelers, 2010; Hadlock and Pierce, 2010) or on its decision to be innovative (Hottenrott and Peters 2012; Hall et al., 2016). Evidence also suggest that these companies might adopt alternative strategies to raise financial resources such as, for instance, trade credits (Danielson and Scott, 2004; De Blasio, 2005; Yang, 2011) or tax avoidance (Edwards et al., 2016; Kong et al., 2021).
These master seminars aim at introducing students to these dynamics, investigating firms behavior under financial constraints through presentation, discussion and critical review of key research papers.
Course objectives
Students will increase their knowledge on market dynamics and firms behavior under financial constraints, and they will advance and deepen their familiarity on research methods through discussions and critical reviews of selected scientific articles.
Organization
These master seminars start with some introductive lectures on the core issues investigated by current literature, and successive seminar sessions during which students have to contribute to the learning process by presenting scientific articles, and actively taking part in discussions concerning the proposed cases studies.
Assessment methods
An oral presentation of scientific articles during the master seminars (first step), and the submission of an essay with a critical review at the end of the course (second step).
Prerequisites
None
Materials
Selected scientific articles.
Cited literature
Danielson, M. G., & Scott, J. A. (2004). Bank loan availability and trade credit demand. Financial Review, 39(4), 579-600.
De Blasio, G. (2005). Does trade credit substitute bank credit? Evidence from firm‐level data. Economic notes, 34(1), 85-112.
Edwards, A., Schwab, C., & Shevlin, T. (2016). Financial constraints and cash tax savings. The Accounting Review, 91(3), 859-881.
Hadlock, C. J., & Pierce, J. R. (2010). New evidence on measuring financial constraints: Moving beyond the KZ index. The Review of Financial Studies, 23(5), 1909-1940.
Hall, B. H., Moncada-Paternò-Castello, P., Montresor, S., & Vezzani, A. (2016). Financing constraints, R&D investments and innovative performances: new empirical evidence at the firm level for Europe. Economics of Innovation and New Technology, 25:3, 183-196.
Hottenrott, H., & Peters, B. (2012). Innovative capability and financing constraints for innovation: more money, more innovation?. Review of Economics and Statistics, 94(4), 1126-1142.
Hyytinen, A., & Väänänen, L. (2006). Where do financial constraints originate from? An empirical analysis of adverse selection and moral hazard in capital markets. Small Business Economics, 27(4-5), 323-348.
Kaplan, S., & Zingales, L. (1997). Do investment-cash flow sensitivities provide useful measures of financing constraints? Quarterly Journal of Economics, 115:707–12.
Kong, X., Si, D. K., Li, H., & Kong, D. (2021). Does access to credit reduce SMEs’ tax avoidance? Evidence from a regression discontinuity design. Financial Innovation, 7(1), 1-23.
Schneider, C., & Veugelers, R. (2010). On young highly innovative companies: why they matter and how (not) to policy support them. Industrial and Corporate change, 19(4), 969-1007.
Tirole, J. (2006). The theory of corporate finance. Princeton: Princeton University Press.
Yang, X. (2011). Trade credit versus bank credit: Evidence from corporate inventory financing. The Quarterly Review of Economics and Finance, 51(4), 419-434.
Rhythmus | Tag | Uhrzeit | Format / Ort | Zeitraum |
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Modul | Veranstaltung | Leistungen | |
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31-M-El1 Elective Courses 1 | Gewählte Veranstaltungen aus dem Bereich "Spezialkenntnisse in ökonomischer Theorie und/oder quantitativen Methoden" 5 LP | Studieninformation | |
31-M-El2 Elective Courses 2 | Gewählte Veranstaltungen aus dem Bereich quantitativen Methoden 5 LP | Studieninformation | |
31-M-El3 Elective Courses 3 | Gewählte Veranstaltungen aus dem Bereich ökonomischer Theorie 5 LP | Studieninformation | |
31-M-Micro3 Microeconomics 3 | Microeconomics 3 | benotete Prüfungsleistung
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Studieninformation |
31-MM18 Projekt/Seminar | Projekt/Seminar 1 | Studienleistung
benotete Prüfungsleistung |
Studieninformation |
Projekt/Seminar 2 | Studienleistung
benotete Prüfungsleistung |
Studieninformation |
Die verbindlichen Modulbeschreibungen enthalten weitere Informationen, auch zu den "Leistungen" und ihren Anforderungen. Sind mehrere "Leistungsformen" möglich, entscheiden die jeweiligen Lehrenden darüber.
Studiengang/-angebot | Gültigkeit | Variante | Untergliederung | Status | Sem. | LP | |
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Bielefeld Graduate School in Theoretical Sciences / Promotion | |||||||
Economics and Management (BiGSEM) / Promotion | Management; Electives | 4 | |||||
Economics and Management (BiGSEM) / Promotion | Economics; Electives | 4 | |||||
Economics and Management (BiGSEM) / Promotion | Finance; Electives | 4 |
Zu dieser Veranstaltung existiert ein Lernraum im E-Learning System. Lehrende können dort Materialien zu dieser Lehrveranstaltung bereitstellen: