Cowan, Kevin N.; Hansen, Erwin G. - In: El Trimestre Económico LXXV (2) (2008) 298, pp. 433-470
This paper quantifies the impact on firms of having excessive short-term debt when they face an unanticipated increase in the cost of refunding. Using a panel dataset of Chilean firms, for the period 1994-2003, we find that when firms face liquidity shocks. Either domestic or foreign, those...