ISSN:
1573-6911
Keywords:
Financial constraints
;
asymmetric information
;
030
;
L22
;
G24
;
D82
;
G14
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract The paper compares the relative efficiency of “country models” in the relationship between finance and investments. Results, confirmed under three different panel data estimates (“Arellano-Bond” GMM method, random and fixed effect estimates) suggest that: i) the UK “thick market” reduces informational asymmetries for large firms and for those firms providing good signals to shareholders; ii) the Japanese “vertical (between firms and banks) integration” and horizontal (among firms) integration” almost eliminates financial constraints (the horizontal integration effect) and equates agency costs across firms (the vertical integration effect). These results are consistent with the “short-termist” hypothesis which assumes that the Japanese economic system can process information more efficiently reducing managerial myopic behaviour and thereby determining positive effects on long term growth.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01384149
