In order to identify the relevant sources of firms' financing constraints, we ask what financial frictions matter for … corporate policies. To that end, we build, solve, and estimate a range of dynamic models of corporate investment and financing … common technology, but differ in the friction generating financing constraints. Using panel data on Compustat firms for the …

competition has first order effects on the cash holdings and financing decisions of constrained firms, in ways consistent with our …

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …'s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher … issue bonds. We also demonstrate that, by changing the cost of financing, these characteristics affect the timing of …

-term financing for lower rollover risk. The results are consistent with models in which firms set their optimal debt structure in the …

choices are too small to explain financing decisions. We also show that by adding agency conflicts in the model and giving the …

Lending relationships matter for firm financing. In a model of debt dynamics, we study how lending relationships are … relationship lenders drastically affect the financing choices of firms with intermediate relationship quality …