Data/hora: 01/06/2024 13:23:17

Provedor de dados: | 31
País: | United States
Título: | The role of financing frictions in agricultural investment decisions: an analysis pre and post financial crisis
Autores: | O'Toole,   Conor M.; Newman,   Carol F.; Hennessy,   Thia C.
Data: | 2011-09-02
Ano: | 2011
Palavras-chave: | Credit Constraints; Firm Level Investment; Tobin's Q; Debt; Agricultural Finance; G31; G32; F34.
Resumo: | This paper uses a fundamental Q model of investment to consider the role played by financing frictions in agricultural investment decisions, controlling econometrically for censoring, heterogeneity and errors-in-variables. Our findings suggest that farmer's investment decisions are not driven by market fundamentals. We find some evidence that debt overhang restricts investment but investment is not dependent on liquidity or internal funds. The role of financing frictions in determining investment decisions changes in the post-financial crisis period when debt overhang becomes a significant impediment to farm investment. The evidence suggests that farmers increasingly rely on internal liquidity to drive investment. Finally, we find no evidence that farmers use on-farm capital to fund on-farm investment.
Tipo: | Conference Paper or Presentation
Idioma: | Inglês
Identificador: | http://purl.umn.edu/114568
Relação: | European Association of Agricultural Economists&gt;2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland
Formato: | 17