Graduation Year
2015
Date of Submission
4-2015
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
Matthew Magilke
Reader 2
Mitch Warachka
Rights Information
© 2015 Barun Roychowdhury
Abstract
In this paper, I discuss the importance of internal funds for corporate investment among financially constrained firms. I use the paper ‘Financing Constraints and Corporate Investments’ by Fazzari, Hubbard and Petersen.as a base for my framework. I focus on a specific paper refuting their findings and their response in order to fully understand the benefits and costs of the framework. I then apply the original framework to a recent sample that covers the Great Recession to see the results of the initial paper are still valid today and if the recent recession and elongated recovery had an even more adverse effect on financially constrained firms than was previously noted.
Recommended Citation
Roychowdhury, Barun, "Do Internal Funds play an important role in Financing Decisions for Constrained Firms?" (2015). CMC Senior Theses. 1090.
https://scholarship.claremont.edu/cmc_theses/1090
