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We posit that the effects of R&D investment on financing choices depend on the degree of intervention barriers and appropriation discrepancy between capital providers and the firm.
However, the literature has not studied the determinants of banks' financing choices in the context of the constraints and incentives introduced by capital regulation.
Second, it is the first analysis to our knowledge that analyzes the determinants of banks' financing choices by accounting for the corporate finance theories and the role of capital regulation.
We use data from Dealogic on the issuances of financial instruments of Spanish banks to test whether financing choices respond to predictions derived from the corporate finance theory and/or to capital regulation.
Banks' financing choices and capital structure did not receive much attention in the banking literature until the crisis, possibly because the amount of capital was thought to be determined by capital regulation (Mishkin 2000).
The rest of this section presents the dependent variables and proxies that are used in the empirical strategy to determine the drivers of banks' financing choices, and an explanation of the empirical methodology used in the analysis.
Similar(37)
With the subprime mortgage crisis and ensuing credit tightening during the last nine months, buyers may now have no other financing choice than to assume or take over the sellers' mortgages.
One of the keys to making the right financing choice is understanding the concept of liquidation preferences.
It's not going to be the role of the state to finance those choices".
But, like all policy choices, financing a paid leave program without middle-class taxes would entail some trade-offs.
But we should distinguish between a woman's right to terminate her pregnancy and the government's obligation to help finance that choice.
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CEO of Professional Science Editing for Scientists @ prosciediting.com