This paper studies firms’ response to realizations of investor demand (i.e., credit supply) when underwriters take orders to place new offerings of corporate bonds. Issuers frequently “upsize” offering amounts when the order book is oversubscribed, delivering a significant increase in...

This paper analyzes how bank regulation that promotes greater access to credit impacts the financing of targeted small firms. It develops a model where banks compete with trade creditors to fund small firms and applies it to study the effects of the Community Reinvestment Act (CRA). The...