This book presents an empirical investigation into the relationship
between companies' short-term response to capital and labor market
frictions and performance. Two different kinds of performance
measures are considered, namely innovation performance and firm
performance. The author focuses on two major topics: first, on the
relation between innovation performance and the use of trade
credit. Second, on the relation between firm performance and the
use of temporary employment. The use of in-depth firm-level data
and state-of-the-art microeconometric methods provide the
scientific rigor to this important investigation to answer the
questions currently being confronted by many companies in different
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