Financial constraints and firm post-entry performance

Bibliographic Details
Main Author: Brito, Paulo
Publication Date: 1995
Other Authors: Mello, António S.
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10400.5/30509
Summary: Firms finance production by internally generated funds and external loans. The benefits of leverage, however, come with a cost. This cost is related to the uncertainty banks face about the firm's quality and output price. As time evolves banks learn about the firm and adjust the terms of the loan contract. Because of this, firms do not have equal access to credit: small, young firms face greater binding debt constraints than more mature firms with well-known prospects. The firm survival rate, as well as the firm rate of growth, are, therefore, important issues in analyzing firm post-entry performance.
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spelling Financial constraints and firm post-entry performanceFinancial Constraints; Firm GrowthDemographyFirms finance production by internally generated funds and external loans. The benefits of leverage, however, come with a cost. This cost is related to the uncertainty banks face about the firm's quality and output price. As time evolves banks learn about the firm and adjust the terms of the loan contract. Because of this, firms do not have equal access to credit: small, young firms face greater binding debt constraints than more mature firms with well-known prospects. The firm survival rate, as well as the firm rate of growth, are, therefore, important issues in analyzing firm post-entry performance.ElsevierRepositório da Universidade de LisboaBrito, PauloMello, António S.2024-04-02T07:29:34Z19951995-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/30509engBrito, Paulo and António S. Mello .(1995). “Financial constraints and firm post-entry performance”. International Journal of Industrial Organization, Volume 13: pp. 543-565. (Search PDF in 2024).0167-718info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-03-17T16:23:54Zoai:repositorio.ulisboa.pt:10400.5/30509Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T04:12:37.253319Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Financial constraints and firm post-entry performance
title Financial constraints and firm post-entry performance
spellingShingle Financial constraints and firm post-entry performance
Brito, Paulo
Financial Constraints
; Firm Growth
Demography
title_short Financial constraints and firm post-entry performance
title_full Financial constraints and firm post-entry performance
title_fullStr Financial constraints and firm post-entry performance
title_full_unstemmed Financial constraints and firm post-entry performance
title_sort Financial constraints and firm post-entry performance
author Brito, Paulo
author_facet Brito, Paulo
Mello, António S.
author_role author
author2 Mello, António S.
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Brito, Paulo
Mello, António S.
dc.subject.por.fl_str_mv Financial Constraints
; Firm Growth
Demography
topic Financial Constraints
; Firm Growth
Demography
description Firms finance production by internally generated funds and external loans. The benefits of leverage, however, come with a cost. This cost is related to the uncertainty banks face about the firm's quality and output price. As time evolves banks learn about the firm and adjust the terms of the loan contract. Because of this, firms do not have equal access to credit: small, young firms face greater binding debt constraints than more mature firms with well-known prospects. The firm survival rate, as well as the firm rate of growth, are, therefore, important issues in analyzing firm post-entry performance.
publishDate 1995
dc.date.none.fl_str_mv 1995
1995-01-01T00:00:00Z
2024-04-02T07:29:34Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/30509
url http://hdl.handle.net/10400.5/30509
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Brito, Paulo and António S. Mello .(1995). “Financial constraints and firm post-entry performance”. International Journal of Industrial Organization, Volume 13: pp. 543-565. (Search PDF in 2024).
0167-718
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
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instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
_version_ 1833601982792728576

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