The impact of financial system development on business cycles volatility: cross-country evidence

Silva, Gisele Ferreira da

doi:10.1016/s0164-0704(02)00021-6

Cited by 60 publications

(26 citation statements)

References 21 publications

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“…This positive relationship between PRIVATE and business cycle volatility is at odds with previous research (seeFerreira da Silva 2002. ) This outcome indicates that economic agents are more likely to undertake speculative and Ponzi schemes as the economy moves towards a boom, as suggested byMinsky (1986).…”

contrasting

confidence: 95%

The Informal Economy and Business Cycles

Ferreira-Tiryaki

2008

Journal of Applied Economics

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contrasting

confidence: 95%

The Informal Economy and Business Cycles

Ferreira-Tiryaki

2008

Journal of Applied Economics

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“…Another school of thought believes that financial development reduces aggregate volatility because it helps firms facing temporary cash flow or net worth problems to obtain the necessary working capital to finance their operations (Caballero and Krishnamurty ). Empirical studies such as Ferreira da Silva (), and Raddatz () all confirmed the stabilizing effect of financial development on output volatility.…”

Section: Robustness Checksmentioning

confidence: 84%

Does Scientific and Technical Research Reduce Macroeconomic Volatility?

Tang

2017

Bulletin of Econ Res

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This paper explores whether conducting scientific and technical (S&T) research reduces the volatility of output growth. The paper finds robust evidence that output volatility is significantly lowered by a country's production of S&T publications. The results show that the effect of S&T publications on output volatility is particularly strong in middle-income, OECD and other high-income countries. However, for East-Asian, low-income and sub-Saharan African countries the effect is either weak or absent. These results provide strong evidence that not only OECD and other high-income countries are actively engaged in S&T research, emerging developing countries are also conducting S&T research, which is effective in reducing output volatility. The results are robust to adding a host of control variables, various subsamples and different estimation techniques.

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“…Also, firms' leverage increases, exposing some firms to higher risks than others. Consequently, as the debt commitments of these riskier firms exceed their increase in profits, their financial structure inherently weakens (Ferreira, 2002). Furthermore, banks take notice of this weakening financial structure and begin to refuse the refinancing of loans.…”

Section: Literaturementioning

confidence: 99%

Credit Availability and Capital Structures: Does Size Matter? An Analysis of the U.S. Lodging Industry

Singh

2016

The Journal of Hospitality Financial Management

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Capital structure composition decisions are considered as very crucial for the overall success of firms. Lodging industry warrants an even greater emphasis on these decisions for the nature of this industry. This study empirically investigates the effect of credit availability on the leverage of large and small lodging firms in the United States using multivariate analysis of variance (MANOVA). This study uses the Case-Schiller home price index to identify the three time points of differing credit availability to businesses in the United States. Leverage, net leverage, and short-to-long-term debt ratios of large and small U.S. lodging firms were analyzed at these differing credit availability time points to assess any significant differences. Significant effects of credit availability were found on the leverage and net leverage of both large and small lodging firms, but no significant effect was found on the short-to-long-term debt ratio of U.S. lodging firms. Interestingly, the leverage levels were found to be highest at the average availability of credit than when compared to the high and low availability of credit.

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The impact of financial system development on business cycles volatility: cross-country evidence

Cited by 60 publications

References 21 publications

The Informal Economy and Business Cycles

The Informal Economy and Business Cycles

Does Scientific and Technical Research Reduce Macroeconomic Volatility?

Credit Availability and Capital Structures: Does Size Matter? An Analysis of the U.S. Lodging Industry

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