The Impact of Financial Constraints on Firms Survival and Growth N ° 2007-37 December 2007

  title={The Impact of Financial Constraints on Firms Survival and Growth N ° 2007-37 December 2007},
  author={Patrick MUSSO and Stefano Schiavo},
We propose a new approach for identifying and measuring the degree of financial constraint faced by firms and use it to investigate the effect of financial constraints on firm survival and development. Using panel data on French manufacturing firms over the 1996 2004 period, we find that (i) financial constraints significantly increase the probability of exiting the market, (ii) access to external financial resources has a positive effect on the growth of firms in terms of sales, capital stock… CONTINUE READING
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