ABSTRACT
This chapter aims to propose a comparative view of panel data econometric estimates testing the existence of informational asymmetries and financial constraints at firm level. It discusses the empirical literature that tests informational asymmetries using panel data at firm level. The chapter focuses on United Kingdom sample estimates and evaluates the efficacy of different country systems in reducing informational asymmetries with a panel data econometric analysis. It also focuses on Japanese sample estimates. The split variables used to create the subsample are firm size, the sectorial level of technology and the recent sector performance on the stock market. If informational problems arise as in "hierarchy of finance" models, investments are sensitive to other variables, access to external financing sources is rationed, or has additional costs, and investment plans are decisively influenced by yearly liquidity. In a "thick market" model the capacity of reducing informational asymmetries on the stock market is a fundamental resource.
