Financial Constraints, Working Capital and the Dynamic Behavior of the Firm

Financial constraints are widespread in developing countries, where even short-term credit is limited. Finance held by firms as working capital is a substantial proportion of sales revenue, yet the role of working capital is largely neglected by ex...

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Bibliographic Details
Main Author:	Chan, Rosanna
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCELERATOR ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCOUNTING ACCOUNTS RECEIVABLE AFFILIATED ORGANIZATIONS AGENCY COSTS AMOUNT OF CAPITAL AVAILABILITY OF CREDIT BANK LOAN BANKING SECTOR BANKING SECTOR ASSETS BASE YEAR BINDING CONSTRAINTS BOND BONDS BORROWING BORROWING REQUIREMENTS BUDGET CONSTRAINT BUSINESS CYCLE BUSINESS CYCLES CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL ASSETS CAPITAL CONSTRAINTS CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL MARKETS CAPITAL RATIO CAPITAL RATIOS CAPITAL REQUIREMENTS CAPITAL STOCK CASH FLOW CASH ON HAND COLLATERAL COMMERCIAL BANKS CONSUMER SURPLUS CONTRACT ENFORCEMENT CORPORATE INVESTMENT CORRUPTION COST OF CAPITAL COST OF FINANCE COST OF FUNDS CREDIT AVAILABILITY CREDIT CONSTRAINED FIRM CREDIT CONSTRAINTS CREDIT MARKET CREDIT RATIONING DEBT DECISION MAKING DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT POLICY DISINVESTMENT DIVIDEND DIVIDEND PAYMENT DURABLE ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC RESEARCH EMERGING ECONOMIES ENFORCEMENT MECHANISMS ENTERPRISE DEVELOPMENT ENTREPRENEURS EQUATIONS EQUIPMENT EXPECTED RETURNS EXTERNAL FINANCE FACTOR DEMAND FACTORS OF PRODUCTION FARMER FINANCE ACCESS FINANCE CONSTRAINTS FINANCES FINANCIAL CONSTRAINT FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL FACTORS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARY FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL POLICY FINANCIAL RESOURCES FINANCIAL SECTOR FIRM GROWTH FIXED INPUTS FIXED INVESTMENT FOREIGN BANKS FOREIGN DIRECT INVESTMENT FOREIGN INFLOWS FOREIGN TRADE GDP GROWTH RATE HIGH INTEREST RATES HOLDING HOLDINGS ID INCOME INCOME EFFECT INEFFICIENCY INSTRUMENT INTEREST RATE INTEREST RATE SHOCKS INTEREST RATES INTERNAL FINANCE INTERNAL FUNDS INTERNATIONAL BANK INVENTORIES INVENTORY INVESTMENT BEHAVIOR INVESTMENT CLIMATE INVESTMENT CLIMATE ASSESSMENT INVESTMENT OPPORTUNITIES INVESTMENT SPENDING INVESTMENT-CASH FLOW SENSITIVITIES LIMITED ACCESS LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY CONSTRAINT LIQUIDITY CONSTRAINTS MACROECONOMICS MANUFACTURING INDUSTRIES MARGINAL COST MARGINAL PRODUCT MARGINAL VALUE MARKET CAPITALIZATION MARKET INTEREST MARKET INTEREST RATES MARKET PRICE MATURITY MICROENTERPRISES NEGATIVE SHOCK NEGATIVE SHOCKS NET WORTH OPPORTUNITY COST OPTIMIZATION PERMANENT SHOCKS PHYSICAL CAPITAL PREPAYMENT PRICE CHANGES PRICE INCREASES PRICE TAKERS PRIVATE INVESTMENT PRIVATE SECTOR DEVELOPMENT PRODUCTION EFFICIENCY PRODUCTION FUNCTION PRODUCTION INPUTS PROFIT MAXIMIZING PROFIT OPPORTUNITY RATE OF GROWTH REAL INTEREST REAL INTEREST RATE RECEIPT RECEIPTS RETURN SALES REVENUE SAVINGS SECONDARY MARKETS SHORT TERM DEBT SOURCES OF FINANCE STOCK EXCHANGES SUBSTITUTION EFFECT SUPPLY SHOCKS TERM CREDIT TERMS OF CAPITAL TRADE CREDIT TRADE LIBERALIZATION TURNOVER VALUE OF OUTPUT VOLATILE ENVIRONMENTS VOLATILITY WAGES WEALTH WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2014/03/19190163/financial-constraints-working-capital-dynamic-behavior-firm http://hdl.handle.net/10986/17300