Financial Market Imperfections and Corporate Decisions

Lessons from the Transition Process in Hungary

  • Emilio Colombo
  • Luca Stanca

Part of the Contributions to Economics book series (CE)

About this book

Introduction

The book presents the results of an empirical investigation of the behaviour of Hungarian firms during the transition process focusing in particular on the role of financial market imperfections for corporate capital structure and investment decisions. The results suggest that financial market reforms have succeeded, albeit partially, in hardening firms's budget constraints and improving the efficiency of the credit allocation process. In particular, following the introduction of the banking sector reform and of the new bankruptcy law, budget constraints became more binding for small private firms, while informational costs became less relevant for foreign-owned firms.

Keywords

Banking Financial Market Imperfections Financial Markets Hungary Investment Transition Economics Transition Process

Authors and affiliations

  • Emilio Colombo
    • 1
  • Luca Stanca
    • 2
  1. 1.Dipartimento di Economia PoliticaUniversita Milano BicoccaMilanoItaly
  2. 2.Dipartimento di Economia PoliticaUniversita Milano BicoccaMilanoItaly

Bibliographic information

  • DOI https://doi.org/10.1007/3-7908-1671-X
  • Copyright Information Physica-Verlag Heidelberg 2006
  • Publisher Name Physica-Verlag HD
  • eBook Packages Business and Economics
  • Print ISBN 978-3-7908-1581-8
  • Online ISBN 978-3-7908-1671-6
  • Series Print ISSN 1431-1933
  • About this book