poor performance increases from zero to seven. We investigate how changes in funding and asset liquidity intensify this … expected to affect hedge fund funding liquidity adversely) and when stock market liquidity (a proxy for asset liquidity) is low …

viewed as increasing debt capacity, other things being equal. This paper focusses on the dark side of liquidity: greater … liquidity reduces the ability of borrowers to commit to a specific course of action. It examines the effects of differences in … asset liquidity on debt capacity. It suggests an alternative theory of financial intermediation and disintermediation …

We study the effect of real asset liquidity on a firm's cost of capital. We find an aggregate asset-liquidity discount … in firms' cost of capital that is strongly counter-cyclical. At the firm-level we find that asset liquidity affects firms … periods of high asset liquidity have lower cost of capital. This effect is stronger when the asset liquidity is provided by …

make sure that all debts within the system are settled. The main result is that these liquidity needs are larger when these …

We explore the link between liquidity and investment in a an overlapping generation model with a standard … this asynchronicity, resulting in credit rationing and a net demand for stores of value -- liquidity -- by the corporate … sector. At the heart of the model is a distinction between inside liquidity -- liquidity created within the private sector …

This paper proposes a theory of corporate liquidity demand and provides new evidence on corporate cash policies. Firms … specification. We also find weak evidence consistent with our agency-based model of corporate liquidity …