1. Introduction -- 2. Financial market imperfections and corporate decisions : theory and evidence -- 3. The transformation of the Hungarian financial system -- 4. Patterns of corporate financial positions -- 5. The determinants of corporate capital structure -- 6. Financial constraints and investment decisions -- 7. Conclusions
Summary
"The book presents the results of an empirical investigation of the behaviour of Hungarian firms during the transition process focusing in particular on the role of financial market imperfections for corporate capital structure and investment decisions. The results suggest that financial market reforms have succeeded, albeit partially, in hardening firms's budget constraints and improving the efficiency of the credit allocation process. In particular, following the introduction of the banking sector reform and of the new bankruptcy law, budget constraints became more binding for small private firms, while informational costs became less relevant for foreign-owned firms."--Jacket
Bibliography
Includes bibliographical references (pages 165-174)
