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Dividend Taxes and the Allocation of Capital

Boissel, Charles; Matray, Adrien - National Bureau of Economic Research - 2022

This paper investigates the 2013 three-fold increase in the French dividend tax rate. Using administrative data covering the universe of firms from 2008-2017 and a quasi-experimental setting, we find that firms swiftly cut dividend payments and used this tax-induced increase in liquidity to...

Persistent link: https://www.econbiz.de/10013334318

The Macroeconomics of Trade Credit

Bocola, Luigi; Bornstein, Gideon - National Bureau of Economic Research - 2023

In most countries, suppliers of intermediate goods and services are also the main providers of short-term financing to firms. This paper studies the macroeconomic implications of these financial links. In our model, trade credit is the outcome of a long-term contract between firms linked in the...

Persistent link: https://www.econbiz.de/10014247947

The Debt-Inflation Channel of the German Hyperinflation

Brunnermeier, Markus Konrad; Correia, Sergio A.; Luck, … - National Bureau of Economic Research - 2023

This paper studies how a large increase in the price level is transmitted to the real economy through firm balance sheets. Using newly digitized macro- and micro-level data from the German inflation of 1919-1923, we show that inflation led to a large reduction in real debt burdens and...

Persistent link: https://www.econbiz.de/10014322686

Racial Disparities in Access to Small Business Credit : Evidence from the Paycheck Protection Program

Howell, Sabrina T.; Kuchler, Theresa; Snitkof, David; … - National Bureau of Economic Research - 2021

We explore the sources of racial disparities in small business lending by studying the $806 billion Paycheck Protection Program (PPP), which was designed to support small business jobs during the COVID-19 pandemic. PPP loans were administered by private lenders but federally guaranteed, largely...

Persistent link: https://www.econbiz.de/10012660042

Economic Growth and Bank Innovation

Gorton, Gary; He, Ping - National Bureau of Economic Research - 2021

since the mid-1930s when banks invented the term loan. Concurrently, bank innovation first involved the invention of credit … analysis and covenant design. Later, bank innovation included the advent of loan sales, increased loan syndications, the … calibrate a model of bank innovation to determine the quantitative contribution of bank innovation to economic growth …

Persistent link: https://www.econbiz.de/10012660004

Share Pledging in China : Funding Listed Firms or Funding Entrepreneurship?

He, Zhiguo; Liu, Bibo; Zhu, Feifei - National Bureau of Economic Research - 2022

This paper studies the connection between share pledging and entrepreneurial activities in China, challenging the common wisdom that share pledging funds circle back to the listed firms. Share pledging funds are at the discretion of the shareholders who pledge their publicly traded shares, and...

Persistent link: https://www.econbiz.de/10012938700

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

Dispersion in Financing Costs and Development

Cavalcanti, Tiago; Kaboski, Joseph Paul; Martins, Bruno … - National Bureau of Economic Research - 2021

Most aggregate theories of financial frictions model credit available at a single cost of financing but rationed. However, using a comprehensive firm-level credit registry, we document both high levels and high dispersion in credit spreads to Brazilian firms. We develop a quantitative dynamic...

Persistent link: https://www.econbiz.de/10012510514

Credit Horizons

Kiyotaki, Nobuhiro; Moore, John; Zhang, Shengxing - National Bureau of Economic Research - 2021

Entrepreneurs appear to borrow largely against their near-term revenues, even when their investment has a longer horizon. In this paper, we develop a model of credit horizons. A question of particular concern to us is whether persistently low interest rates can stifle economic activity. With...

Persistent link: https://www.econbiz.de/10012510621

Falling Rates and Rising Superstars

Kroen, Thomas; Liu, Ernest; Mian, Atif; Sufi, Amir - National Bureau of Economic Research - 2021

Do low interest rates contribute to the rise in market concentration? Using data on firm financials and high frequency monetary policy shocks, we find that falling interest rates disproportionately benefit industry leaders, especially when the initial interest rate is already low. Falling rates...

Persistent link: https://www.econbiz.de/10012660046