In this paper, we find that reduced credit supply reduces firm investments in our sample of small private firms. The … firms hedge against potential future credit supply shocks? (ii) did they have better access to shareholder funding? or (iii …) was the effect driven by past investment patterns? We find that access to shareholder funding during the crisis offset the …

Firm investment, Intangible assets, Loan terms, Credit constraint, Survey data, Instrumental variable approachUsing … European firm-level data from a new survey, the EIBIS, we document the effect of bank loan terms on investment in intangible … benefit from the complementarities of these assets. We document the effect of loan conditions on investment intensity, as well …

companies, and on firm investment. Our results suggest that an increase in bank market power reduces firms' credit availability …This article investigates the short-term and long-term effects of bank market power on the availability of credit for … and investment in the short-term, but firm investment recovers in the long-term. The economic significance of these …

This paper examines the sensitivity of investment to cash flow in declining economic conditions, focusing on the impact …, the study utilizes the standard Q theory of investment augmented by cash flow, leverage, and liquidity. Then, it allows … credit. Using alternative estimation specifications, the findings indicate that firms' investments decreased significantly in …