Journal Article
Performance and access to government guarantees: the case of small business investment companies
Jackson, William E.; Worthington, Paula R.; Brewer, Elijah; Genay, Hesna (1996-09)
This article analyzes the performance of small business investment companies (SBICs) that are chartered and regulated by the Small Business Administration (SBA). Our principal finding is that poor performance over the 1986-91 period is associated with high usage of funds from the SBA.
Economic Perspectives , Volume 20 , Issue Sep , Pages 16-32

Journal Article
How are small firms financed? Evidence from small business investment companies
Jackson, William E.; Worthington, Paula R.; Brewer, Elijah; Genay, Hesna (1996-11)
This article examines the investment decisions of small business investment companies (SBICs). The results indicate that potential costs of contracting among SBICs, small firms, and others may have significant effects on how small firms are funded. For instance, projects generating tangible assets and firms operating in industries with few growth opportunities are more likely to be financed with debt than nondebt.
Economic Perspectives , Volume 20 , Issue Nov , Pages 2-18

Journal Article
Recent trends in corporate leverage
Worthington, Paula R. (1993-05)
Economic Perspectives , Volume 17 , Issue May , Pages 24-31

Journal Article
Investment, GNP, and real exchange rates
Worthington, Paula R. (1991-07)
Economic Perspectives , Volume 15 , Issue Jul , Pages 2-10

Journal Article
The increasing importance of retailers' inventories
Worthington, Paula R. (1998-07)
Although inventory--sales (IS) ratios and inventory volatility have declined somewhat since the early 1980s, little evidence supports the view that declining IS ratios are associated with declines in inventory investment volatility. In the retail sector, IS ratios have risen and inventory investment volatility has, at best, not increased, pointing to a more significant role in future cyclical fluctuations.
Economic Perspectives , Volume 22 , Issue Q III

Working Paper
A Trojan horse or the golden fleece? small business investment companies and government guarantees
Worthington, Paula R.; Brewer, Elijah; Genay, Hesna; Adams, William James (1997)
Profitability is a central concern when governments provide guarantees to increase the flow of funds to disadvantaged groups. We examine the profitability of small business investment companies (SBICs) that are chartered and regulated by the U.S. Small Business Administration (SBA) to finance the activities of small firms. We document, over the 1986-91 period, dismal performance by SBICs. Because SBICs have access to government-guaranteed funds, financial distress among SBICs can expose the SBA, and hence taxpayers, to losses. Using two alternative sample selection models, we examine the ...
Working Paper Series, Issues in Financial Regulation , Paper WP-97-22

Working Paper
The security issue decision: evidence from small business investment companies
Worthington, Paula R.; Brewer, Elijah; Genay, Hesna; Adams, William James (1996)
Using a unique transactions-level dataset, this paper examines the investment choices of small business investment companies (SBICs), which are private venture capital firms licensed and regulated by the U.S. Small Business Administration (SBA). SBICs make debt and equity investments in small businesses, and we seek to explain their security choices. We focus on factors suggested by asymmetric information and contracting theories of security choice. Overall, our results are consistent with the predictions of contracting theory, although certain aspects of our results also support asymmetric ...
Working Paper Series, Issues in Financial Regulation , Paper WP-96-27

Newsletter
Issues in funding the activities of small firms through SBICs
Jackson, William E.; Worthington, Paula R.; Brewer, Elijah; Genay, Hesna (1997-01)
Chicago Fed Letter , Issue Jan

Newsletter
Debt in the 1990s
Worthington, Paula R.; Eugeni, Francesca; Strongin, Steven (1993-05)
Chicago Fed Letter , Issue May

Working Paper
Investment, cash flow, and sunk costs
Worthington, Paula R. (1993)
Working Paper Series, Macroeconomic Issues , Paper 93-4