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The Real Effects of Financial Constraints : Evidence from a Financial Crisis

Campello, Murillo - 2009

We survey 1,050 CFOs in the U.S., Europe, and Asia to assess whether their firms are credit constrained during the global credit crisis of 2008. We study whether corporate spending plans differ conditional on this measure of financial constraint. Our evidence indicates that constrained firms...

Persistent link: https://www.econbiz.de/10012463097

Corporate Flexibility in a Time of Crisis

Barry, John W.; Campello, Murillo; Graham, John R.; Ma, … - National Bureau of Economic Research - 2022

We use the COVID shock to study the direct and interactive effects of several forms of corporate flexibility on short- and long-term real business plans. We find that i) workplace flexibility, namely the ability for employees to work remotely, plays a central role in determining firms'...

Persistent link: https://www.econbiz.de/10012938715

The Real and Financial Implications of Corporate Hedging

Campello, Murillo - 2010

We study the implications of hedging for firm financing and investment. We do so using an extensive, hand … loan agreements. These favorable financing terms, in turn, allow hedgers to invest more. Our tests characterize two exact … present shows that hedging has a first-order effect on firm financing and investment, and provides new insights into how …

Persistent link: https://www.econbiz.de/10012462029

Liquidity Management and Corporate Investment During a Financial Crisis

Campello, Murillo - 2010

This paper uses a unique dataset to study how firms managed liquidity during the financial crisis. Our analysis provides new insights on the interactions between internal liquidity, external funds, and real corporate decisions, such as investment and employment. We first describe how companies...

Persistent link: https://www.econbiz.de/10012462348

Aggregate Risk and the Choice between Cash and Lines of Credit

Acharya, Viral V. - 2010

We argue that a firm's aggregate risk is a key determinant of whether it manages its future liquidity needs through cash reserves or bank lines of credit. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result, firms with high aggregate risk find it costly to get...

Persistent link: https://www.econbiz.de/10012462534

Corporate Debt Maturity and the Real Effects of the 2007 Credit Crisis

Almeida, Heitor - 2009

We use the 2007 credit crisis to assess the effect of financial contracting on real corporate behavior. We identify heterogeneity in financial contracting at the onset of the crisis by exploring ex-ante variation in long-term debt maturity. Our empirical methodology uses an experiment-like...

Persistent link: https://www.econbiz.de/10012463659

Corporate Financial and Investment Policies when Future Financing is not Frictionless

Almeida, Heitor - 2006

Much of corporate finance is concerned with the impact of financing constraints on firms. However, the literature on … financing constraints largely ignores the intertemporal implications of those constraints; in particular, how future financing … constraints affect current investment decisions. We present a model in which future financing constraints lead firms to have a …

Persistent link: https://www.econbiz.de/10012465889

Real Assets and Capital Structure

Campello, Murillo - 2012

We characterize the relation between asset structure and capital structure by exploiting variation in the salability of corporate assets. Theory suggests that asset tangibility increases borrowing capacity because it allows creditors to more easily repossess a firm's assets. Tangible assets,...

Persistent link: https://www.econbiz.de/10012460512