Financial Constraints Risk

# Financial Constraints Risk > OpenAlex Metadata Hub · https://openalex.org/W3121786372 ## Bibliographic - **DOI:** 10.1093/rfs/hhj012 - **Year:** 2006 - **Citations:** 3586 - **Open Access:** No (closed) - **License:** — - **Source:** https://doi.org/10.1093/rfs/hhj012 ## Authors - Toni M. Whited - Guojun Wu ## Abstract We construct an index of firms' external finance constraints via generalized method of moments (GMM) estimation of an investment Euler equation. Unlike the commonly used KZ index, ours is consistent with firm characteristics associated with external finance constraints. Constrained firms' returns move together, suggesting the existence of a financial constraints factor. This factor earns a positive but insignificant average return. Much of the variation in this factor cannot be explained by the Fama--French and momentum factors. Cross-sectional regressions of returns on our index and other firm characteristics show that constrained firms earn higher returns and that the financial-constraints effect dominates the size effect. Copyright 2006, Oxford University Press. ## Keywords Library science, Finance, Management, Economics, Computer science ## Concepts - Library science - Finance - Management - Economics - Computer science --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “Financial Constraints Risk” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): We construct an index of firms' external finance constraints via generalized method of moments (GMM) estimation of an investment Euler equation. Unlike the commonly used KZ index, ours is consistent with firm characteristics associated with external finance constraints. Constrained firms' returns move together, suggesting the existence of a financial constraints factor. This factor earns a positive but insignificant average return. Much of the variation in this factor cannot be explained by the Fama--French and momentum factors. Cross-sectional regressions of returns on our index and other firm characteristics show that constrained firms earn higher returns and that the financial-constraints effect dominates the size effect. Copyright 2006, Oxford University Press. Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.