Financial constraints an application to portuguese firms

• Author(s): Silva, Filipe Manuel Fernandes Rosa Baptista e
• Date: 2012
• Persistent ID: http://hdl.handle.net/10316/20786
• Origin: Estudo Geral - Universidade de Coimbra
• Subject(s): Financial constraints; Firm-level studies; Portugal; Services; Exports; European financial integration; Innovation; R&D investment; Subsidies
• Document Type: Doctoral Thesis
• Language: English
• Advisor(s): Carreira, Carlos Manuel Gonçalves

Description

This thesis addresses the financing problems faced by firms. Specifically, we test for the existence of firms’ financial constraints, as well as we analyse their role upon firm behaviour. We argue that: a) Portuguese firms face significant financial constraints; b) the extent to which firms are affected by constraints depends on a number of distinct characteristics, beyond financial aspects; c) financial constraints clearly influence firm behaviour, namely with regard to export and innovation activities; d) suitable policies to mitigate financial constraints should be considered, even though subsidies might not be the most effective policy instrument. To support these arguments, we conduct several tests, using a large representative sample of Portuguese firms and different approaches to measure financial constraints. Accordingly, this thesis contributes to the understanding of firms’ behaviour under financial problems, while it points directions for future research. Finally, this work has serious implications upon future policy actions. Tese de doutoramento em Economia, apresentada à Faculdade de Economia da Universidade de Coimbra, sob a orientação de Carlos Manuel Gonçalves Carreira.