"This paper is the first to study the effect of financial restatement on bank loan contracting. Compared with loans …

cash reserves or bank lines of credit. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result … channel that drives these effects in our model, we find that firms with high asset beta face higher spreads on bank credit …, firms with high aggregate risk find it costly to get credit lines from banks and opt for cash reserves in spite of higher …

rights and priorities influenced the availability of credit. Using a unique data set from the nineteenth century United … States and borrower fixed effects, I find that partnerships paid more for credit than proprietorships. The interest rate …

default; ii) they can choose to raise finance through bank loans or corporate bonds; and iii) banks are more efficient than … corporate credit risk relative to the US, and when european firms value more than US firms the flexibility and information …