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 … bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to …

, the model reflects empirical credit spread patterns, rationalizes the observed joint distribution of corporate events and … generates novel implications for the impact of renegotiable debt on covenant and investment policies …

trust that bank managers and suppliers have in the SME, the more short-term finance an SME can obtain and should use. …

relation between financial reporting quality and corporate investment decisions. Ineffective monitoring and capital rationing … by shareholders and banks due to information asymmetry may result in a lack of management's investment responses to … can reduce these problems and thus increase management's investment sensitivity to changes in growth opportunities. The …

corporate investment and its financing structure. We identify shocks to overall demand and loan supply with sign and impact … restrictions. Although tightened financial conditions have adversely impacted corporate investment during and after the sovereign … ratio since the crisis reflects bottlenecks in the provision of bank credit and (2) the tightened loan supply has been more …