How informational frictions impact firm performance
Can finance and the relaxation of informational frictions for firms promote economic growth? What is the impact of frictions on corporate outcomes? The EU-funded grow project will answer these questions. It will use state-of-the-art methodology in finance and economics that allows inferring causality. Specifically, it will study a public policy programme of certification (rating) of firms that was introduced by a government agency in Portugal in 2008. The aim is to estimate the impact of informational and financial frictions on corporate performance. The project will investigate the channels through which the links between informational frictions, access to financing and corporate growth operate. It will also consider the externalities generated by firm certification on a broader network.
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