Financial Constraints Risk

By Toni M. Whited, Guojun Wu. 2006

3,248 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/a6bbd8c7fd38cb2ae468f3eb04ed6f26005de576

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Citations in the corpus

External Finance Constraints and the Intertemporal Pattern of Intermittent Investment (2006, neutral): “I choose not to use the second, because Whited and Wu (2005) demonstrate that it does not isolate constrained firms.”
Capital and Labor Reallocation within Firms (2015, methodology): “The WW-index represents the shadow value of scarce funds and loads negatively on 37 cash flow, dividends, sales growth, and total assets, and positively on long-term debt and sales growth in the firm’s industry.”
Using 10-K Text to Gauge Financial Constraints (2015, methodology): “Whited and Wu (2006) (hereafter WW) create a six component index; two of WW’s components, total assets and dividend dummy, are directly linked with larger and older firms.”
Financial Heterogeneity and the Investment Channel of Monetary Policy (2018, neutral): “First, leverage is tightly linked, both empirically and theoretically, to the costs of external finance (see, for example, Kaplan and Zingales, 1997; Whited and Wu, 2006; Tirole, 2010).”
How Does Financing Impact Investment? The Role of Debt Covenants (2008, background): “Related to this first measure is our second proxy, the Whited and Wu (2006) index, which measures financial constraints.”
Cash Holdings, Competition, and Innovation (2016, neutral): “• The Whited–Wu (WW) index, computed in Whited and Wu (2006) as WWi,t = −0.”
Investment, Idiosyncratic Risk, and Ownership (2011, positive): “We use two variables to measure the likelihood of a firm being financially constrained: the Whited and Wu (2006) index and whether a firm is assigned a credit rating by Standard and Poor’s.”
Financial Constraints and Firm Export Behavior (2010, positive): “on a structural model, Whited and Wu (2006) use the shadow price of capital to proxy for”