A stochastic frontier analysis of financing constraints on investment: The case of financial liberalization in Taiwan

Journal of Business and Economic Statistics

Volumn 21, Issue 3, 2003, Pages 406-419

  Wang, Hung Jen ^a  

^a INSTITUTE OF ECONOMICS   (Taiwan)

Author keywords

Financial liberalization; Financing constraints; Stochastic frontier

Indexed keywords

EID: 0042265028     PISSN: 07350015     EISSN: None     Source Type: Journal    
DOI: 10.1198/073500103288619016     Document Type: Article

References (34)

1. Aigner, D., Lovell, C. A. K., and Schmidt, P. (1977), "Formulation and Estimation of Stochastic Frontier Production Function Models," Journal of Econometrics, 6, 21-37.
2. Battese, G. E., and Coelli, T. J. (1988), "Prediction of Firm-Level Technical Efficiencies with a Generalized Frontier Production Function and Panel Data," Journal of Econometrics, 38, 387-399.
3. _ (1995), "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, 20, 325-332.
4. Bond, S., and Meghir, C. (1994), "Dynamic Investment Models and the Firm's Financial Policy," Review of Economic Studies, 61, 197-222.
5. Carpenter, R. E., Fazzari, S. M., and Petersen, B. C. (1994), "Inventory Investment, Internal-Finance Fluctuations, and the Business Cycle," Brookings Papers on Economic Activity, 2, 75-137.
6. Caudill, S. B., and Ford, J. M. (1993). "Biases in Frontier Estimation due to Heteroscedasticity," Economics Letters, 41, 17-20.
7. Caudill, S. B., Ford, J. M., and Cropper, D. M. (1995), "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business and Economic Statistics, 13, 105-111.
8. Chirinko, R. S. (1993), "Business Fixed Investment Spending: Modeling Strategies, Empirical Results, and Policy Implications," Journal of Economic Literature, 31, 1875-1911.
9. _ (1997), "Finance Constraints, Liquidity, and Investment Spending: Theoretical Restrictions and International Evidence," Journal of the Japanese and International Economies, 11, 185-207.
10. Chirinko, R. S., and Schaller, H. (1995), "Why Does Liquidity Matter in Investment Equations?," Journal of Money, Credit, and Banking, 27, 527-548.
11. Coelli, T. (1995), "Estimators and Hypothesis Tests for a Stochastic Frontier Function: A Monte Carlo Analysis," Journal of Productivity Analysis, 6, 247-268.
12. Coelli, T., and Battese, G. (1996), "Identification of Factors Which Influence the Technical Inefficiency of Indian Farmers," Australian Journal of Agricultural Economics, 40, 103-128.
13. Fazzari, S. M., Hubbard, R. G., and Petersen, B. C. (1988), "Financing Constraints and Corporate Investment," Brookings Papers on Economic Activity, 1, 141-195.
14. Gertler, M., and Gilchrist, S. (1994), "Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms," Quarterly Journal of Economics, 109, 309-340.
15. Gilchrist, S., and Himmelberg, C. P. (1995), "Evidence on the Role of Cash Flow for Investment," Journal Of Monetary Economics, 36, 541-572.
16. Hadri, K. (1999), "Estimation of a Doubly Heteroscedastic Stochastic Frontier Cost Function," Journal of Business and Economic Statistics, 17, 359-363.
17. Hayashi, F. (1985), "Corporate Finance Side of the Q Theory of Investment," Journal of Public Economics, 27, 261-280.
18. Hu, X., and Schiantarelli, F. (1998), "Investment and Capital Market Imperfections: A Switching Regression Approach Using U.S. Firm Panel Data," Review of Economics and Statistics, 80, 466-479.
19. Huang, C. J., and Liu, J. T. (1994), "Estimation of a Non-Neutral Stochastic Frontier Production Function," Journal of Productivity Analysis, 5, 171-180.
20. Hubbard, R. G. (1998), "Capital-Market Imperfections and Investment," Journal of Economic Literature, 36, 193-225.
21. Hubbard, R. G., Kashyap, A. K., and Whited, T. M. (1995), "Internal Finance and Firm Investment," Journal of Money, Credit and Banking, 27, 683-701.
22. Kaplan, S. N., and Zingales, L. (1997), "Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints," Quarterly Journal of Economics, 112, 169-215.
23. _ (2000), "Investment-Cash Flow Sensitivities Are Not Valid Measures of Financing Constraints," Quarterly Journal of Economics, 115, 707-712.
24. Kodde, D. A., and Palm, F. C. (1986), "Wald Criteria for Jointly Testing Equality and Inequality Restrictions," Econometrica, 54, 1243-1248.
25. Kumbhakar, S. (1991), "Estimation of Technical Inefficiency in Panel Data Models With Firm- and Time-Specific Effects," Economics Letters, 36, 43-48.
26. Kumbhakar, S., and Lovell, C. A. K. (2000), Stochastic Frontier Analysis, Cambridge, U.K.: Cambridge University Press.
27. Kumbhakar, S. C., Ghosh, S., and McGuckin, J. T. (1991), "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business and Economic Statistics, 9, 279-286.
28. Kumbhakar, S. C., and Hjalmarsson, L. (1995), "Labour-Use Efficiency in Swedish Social Insurance Offices," Journal of Applied Econometrics, 10, 33-47.
29. Lewellen, W. G., and Badrinath, S. G. (1997), "On the Measurement of Tobin's q," Journal of Financial Economics, 44, 77-122.
30. Meeusen, W., and van den Broeck, J. (1977), "Technical Efficiency and Dimension of the Firm: Some Results on the Use of Frontier Production Functions," Empirical Economics, 2, 109-122.
31. Osterberg, W. P. (1989), "Tobin's q, Investment, and the Endogenous Adjustment of Financial Structure," Journal of Public Economics, 40, 293-318.
32. Stevenson, R. E. (1980), "Likelihood Functions for Generalized Stochastic Frontier Estimation," Journal of Econometrics, 13, 57-66.
33. Vuong, Q. H. (1989), "Likelihood Ratio Tests for Model Selection and NonNested Hypotheses," Econometrica, 57, 307-333.
34. Whited, T. M. (1992), "Debt, Liquidity Constraints, and Corporate Investment: Evidence from Panel Data," The Journal of Finance, 47, 1425-1460.