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Did high leverage render small businesses vulnerable to the COVID-19 shock?

Bräuning, Falk; Fillat Comenge, José Luis; Wang, J. … - 2022 - This version: July 2022

leverage faced tighter constraints in accessing bank credit after the COVID-19 outbreak in spring 2020. Specifically, SMEs with … higher pre-COVID leverage obtained a smaller volume of new loans and had to pay a higher spread on them during the pandemic … were not able to substitute to other sources of debt financing and thus experienced more of a reduction in total debt as …

Persistent link: https://www.econbiz.de/10013414903

The financial structure of startup firms : the role of assets, information, and entrepreneur characteristics

Sanyal, Paroma; Mann, Catherine L. - 2010

the entrepreneurs have other similar businesses are more likely to use external debt in the financial structure since … property assets have a lower probability of using debt, consistent with the higher asset specificity and lower collateral value …

Persistent link: https://www.econbiz.de/10008778670

Internal sources of finance and the great recession

Barnes, Michelle L.; Pancost, N. Aaron - 2010

The rising stockpile of cash as a share of total assets at U.S. firms has intrigued economists since at least the paper of Bates, Kahle, and Stulz (2006), yet there has been relatively little work on where this cash has come from and how it is related to investment performance. We exploit...

Persistent link: https://www.econbiz.de/10008778708

Corporate finance and the transmission of shocks to the real economy

Bräuning, Falk; Fillat Comenge, José Luis; Joaquim, … - 2021 - This version: November 2021

Credit availability from different sources varies greatly across firms and has firm-level effects on investment decisions and aggregate effects on output. We develop a theoretical framework in which firms decide endogenously at the extensive and intensive margins of different funding sources to...

Persistent link: https://www.econbiz.de/10012796283

The distress premium puzzle

Ozdagli, Ali - 2010

stock returns in the model. The model also captures the fact that book-to-market value dominates financial leverage in …

Persistent link: https://www.econbiz.de/10008778727

The great recession and bank lending to small businesses

Montoriol-Garriga, Judit; Wang, J. Christina - 2011

This paper investigates whether small firms have experienced worse tightening of credit conditions during the Great Recession than large firms. To structure the empirical analysis, the paper first develops a simple model of bank loan pricing that derives both the interest rates on loans actually...

Persistent link: https://www.econbiz.de/10009500930

Is bank debt special for the transmission of monetary policy? : evidence from the stock market

Ippolito, Filippo; Ozdagli, Ali; Pérez, Ander - 2013 - This version: September 2013

dependence of firms precisely, as the ratio of bank debt to total assets. We show that a two standard deviation increase in the …

Persistent link: https://www.econbiz.de/10010232416

Business complexity and risk management : evidence from operational risk events in U.S. bank holding companies

Chernobai, Anna; Ozdagli, Ali; Wang, Jianlin - 2016 - This version: October 2016

How does business complexity affect risk management in financial institutions? The commonly used risk measures rely on either balance-sheet or market-based information, both of which may suffer from identification problems when it comes to answering this question. Balance-sheet measures, such as...

Persistent link: https://www.econbiz.de/10011562964

Financial frictions and the reaction of stock prices to monetary policy shocks

Ozdagli, Ali - 2014 - This version: July 29, 2014

This paper reveals and tests a new theoretical implication of the credit channel of monetary policy: as financial frictions (monitoring or auditing costs) increase, the reaction of stock prices to monetary policy shocks decreases. Correspondingly, towards the end of the Enron accounting scandal,...

Persistent link: https://www.econbiz.de/10010395119

Does firm value move too much to be justified by subsequent changes in cash flow?

Larrain, Borja (contributor); Yogo, Motohiro (contributor) - 2005

and debt. When discount rates are low and equity issuance is high, expected cash‐flow growth is low because firms … repurchase debt to offset equity issuance. A variance decomposition of the ratio of net payout reveals little transitory …

Persistent link: https://www.econbiz.de/10003230361