Redefining Financial Constraints: A Text-Based Analysis

• 成果类型: Article
• 署名作者: Hoberg, Gerard; Maksimovic, Vojislav
• 署名单位: University of Southern California; University System of Maryland; University of Maryland College Park
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhu089
• 发表日期: 2015
• 页码: 1312
• 关键词: research-and-development; information-content; corporate-finance; AGENCY COSTS; cash flow; MARKET; debt; INVESTMENT; takeovers; GROWTH

摘要

We score 10-K text to obtain annual measures of financial constraints, with separate measures for firms reporting equity and debt financing issues. Equity market constraints are associated with firms funding growth opportunities, have more severe consequences for the firm following large unexpected negative shocks, and are likely driven by informational asymmetries. A significant population of firms reporting equity market constraints also declare that they possess material undisclosed proprietary information. Constraints in the debt markets are distinct and are linked to covenant violations. Our measures outperform others used in the literature in predicting investment cuts following negative shocks.