Similar Search Results

Do Financial Frictions Explain Chinese Firms’ Saving and Misallocation?

Bai, Yan - 2018

' saving and capital misallocation. We first document the features of the data in terms of firm dynamics and debt financing … loan. Using evidence on the firm size distribution and financing patterns, we estimate the model and find it can explain …

Persistent link: https://www.econbiz.de/10012453278

Financing Durable Assets

Rampini, Adriano A. - 2016

This paper studies the effect of durability on the financing of durable assets. We show that more durable assets … the price of an asset and hence the overall financing need more than its collateral value. This insight has implications … dominated technologies. More durable assets are more likely to be rented given their larger financing need. Legal enforcement …

Persistent link: https://www.econbiz.de/10012271598

Equilibrium Corporate Finance and Intermediation

Bisin, Alberto - 2014

frictions. Firms take their production, financing, and contractual decisions so as to maximize their value under rational …

Persistent link: https://www.econbiz.de/10012458322

Financing as a Supply Chain : The Capital Structure of Banks and Borrowers

Gornall, William - 2013

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset volatility by an order of magnitude relative to that of...

Persistent link: https://www.econbiz.de/10012459028

When Credit Bites Back : Leverage, Business Cycles, and Crises

Jordà, Òscar - 2011

This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a study of the universe of over 200 recession episodes in 14 advanced countries between 1870 and 2008, we document two key facts of the modern business cycle: financial-crisis...

Persistent link: https://www.econbiz.de/10012461036

Financial Contracting

Hart, Oliver - 2001

This paper discusses how economists' views of firms' financial structure decisions have evolved from treating firms' profitability as given; to acknowledging that managerial actions affect profitability; to recognizing that firm value depends on the allocation of decision or control rights. The...

Persistent link: https://www.econbiz.de/10012470439

Cash Flow and Investment : Evidence from Internal Capital Markets

Lamont, Owen - 1996

Using data from the 1986 oil price decrease, I examine the capital expenditures of non-oil subsidiaries of oil companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases investment, holding fixed the profitability of investment, and 2) the finance costs of different...

Persistent link: https://www.econbiz.de/10012473360

Financing the American Corporation : The Changing Menu of Financial Rela-tionships

Calomiris, Charles W. - 1996

The history of the financing of the American corporation can be described along many dimensions. One dimension of that … which arise from a corporation's financing needs. The menu of financial relationship choices available to firms has varied …

Persistent link: https://www.econbiz.de/10012473415

Accounting Standards, Information Flow, and Firm Investment Behavior

Cummins, Jason G. - 1994

We present a description of two different accounting regimes that govern reporting practice in most developed countries. 'One-book' countries, e.g. Germany, use their tax books as the basis for financial reporting and 'two-book' countries, e.g. the United States, keep the books largely separate....

Persistent link: https://www.econbiz.de/10012474247

What do Firms do with Cash Windfalls?

Blanchard, Olivier J. - 1993

light on alternative theories of corporate financing and investment. Our evidence is broadly inconsistent with the perfect …

Persistent link: https://www.econbiz.de/10012474704