The effect of external finance on the equilibrium allocation of capital

• 成果类型: Article
• 署名作者: Almeida, H; Wolfenzon, D
• 署名单位: New York University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2004.06.001
• 发表日期: 2005
• 页码: 133-164
• 关键词: capital reallocation; financial development; Investor protection; external finance

摘要

We develop an equilibrium model to understand how the efficiency of capital allocation depends on outside investor protection and the external financing needs of firms. We show that when capital allocation is constrained by poor investor protection, an increase in firms' external financing needs may improve allocative efficiency by fostering the reallocation of capital from low to high productivity projects. We also find novel empirical support for this prediction. (C) 2004 Elsevier B.V. All rights reserved.