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Liquidity requirements, free-riding, and the implications for financial stability evidence from the early 1900s

Carlson, Mark; Jaremski, Matthew - 2018

Maintaining sufficient liquidity in the financial system is vital for financial stability. However, since returns on liquid assets are typically low, individual financial institutions may seek to hold fewer such assets, especially if they believe they can rely on other institutions for liquidity...

Persistent link: https://www.econbiz.de/10011927091

Tapping into financial synergies : alleviating financial constraints through acquisitions

Williamson, Rohan; Yang, Jie - 2018 - This version: May, 2018

proceeds. Following acquisition, constrained acquirers raise more debt and increase investments, consistent with experiencing …

Persistent link: https://www.econbiz.de/10012016094

Mixed signals : investment distortions with adverse selection

Darst, R. Matthew; Refayet, Ehraz - 2019

We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are distorted above perfect information allocations. By...

Persistent link: https://www.econbiz.de/10012181247

Equity market misvaluation, financing, and investment

Warusawitharana, Missaka; Whited, Toni Marion - 2013 - Rev.

Persistent link: https://www.econbiz.de/10010432478

A collateral theory of endogenous debt maturity

Darst, R. Matthew; Refayet, Ehraz - 2017

Persistent link: https://www.econbiz.de/10011709339

The magnitude and cyclical behavior of financial market frictions

Levin, Andrew Theo (contributor); … - 2004

finance by estimating the structural parameters of a canonical debt-contracting model with informational frictions. For this … spreads on publicly traded debt for about 900 U.S. firms over the period 1997Q1 to 2003Q3. Using nonlinear least squares, we … the expansionary period 1997-99, but rose sharply in 2000--especially for firms with higher ratios of debt to equity …

Persistent link: https://www.econbiz.de/10002509233