cover image: Firm Heterogeneity and the Capital Market ∗ Tobias König Job

20.500.12592/z0xsv7

Firm Heterogeneity and the Capital Market ∗ Tobias König Job

16 Nov 2021

The estimation of the average responses for different subsets of the firm distribution sug- gest the existence of nonlinear effects and the relevance of financial constraints for the transmission of equity shocks. [...] Figure 2b splits the firm size bins along the following decades: the 1980s, the 1990s, the 2000s, and the 2010s. [...] The first half of the 1990s and the periods prior to the bursting of the dot-com bubble are characterized by large positive shocks to equity issuance, while the Asian financial crisis and the time pe- riods during the Great Recession represent large negative shocks. [...] 3.2.1 Relevance of the GIV In order to evaluate the relevance of the estimated GIV, I regress the aggregate growth rate of external equity on the GIV. [...] In order to investigate further the role of firm heterogeneity for the transmission of the shock, one has to look at the marginal effects of the financial constraints.
Pages
57
Published in
Germany