This paper analyzes the effects of parliamentary election cycles on the Turkish banking system. Using annual bank-level data representing all banks in Turkey during 1963-2007, we present evidence of meaningful differences in the structure of bank assets, liabilities and financial performance...

We investigate the impact of debt on a panel of U.S. manufacturing firms' capital investment behavior as the underlying firm-specific and market-level uncertainty changes. Our estimates show that the influence of leverage on capital investment may be stimulating or mitigating depending on the...

We investigate the impact of measures of uncertainty on firms' capital investment behavior using a panel of U.S. firms. Increases in firm-specific and CAPM-based measures have a significant negative effect on investment spending, while market-based uncertainty has a positive impact.

This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio in response to changes in either macroeconomic or...

We estimate firms' cash flow sensitivity of cash to empirically test how the financial system's structure and level of development influence their financial constraints. For this purpose we merge Almeida et al.'s work, a path-breaking design for evaluating a firm's financial constraints, with...

This paper investigates how variations in macroeconomic uncertainty distort commercial banks' allocation of loanable funds by analyzing the dispersion of banks' total loan-to-asset ratios over a quarter-century period.

We present an empirical investigation of the hypotheses that exchange rate uncertainty may have an impact on both the volume and variability of trade flows by considering a broad set of industrial countries' bilateral real trade flows over the period 1980-1998. Similar to the findings of earlier...