In order to identify the relevant sources of firms' financing constraints, we ask what financial frictions matter for … corporate policies. To that end, we build, solve, and estimate a range of dynamic models of corporate investment and financing … common technology, but differ in the friction generating financing constraints. Using panel data on Compustat firms for the …

concludes that firms suffering from under- (over-) investment problem due to financing constraints (agency problem), are more … study has demonstrated a novel approach by concurrently incorporating the monitoring and financing issues that disturb the … that has the potential to balance the investment distortions by rectifying monitoring and financing deficiencies. …

) delta conditional value at risk, and (iv) lower tail dependence. Our results demonstrate that the alternative measurement …

external financing. We document that when facing higher financial constraints, firms pay higher audit fees and have their audit … more financing in the equity and debt markets. We find that costlier and timelier audits facilitate equity …-seeking constrained, but not debt-seeking constrained, firms' access to financing. Our findings suggest that while financially constrained …

We examine how time-varying macroeconomic conditions affect firms' financing decisions. A principal components …

provides variation in debt financing availability unrelated to firm fundamentals. We exploit this market segmentation to …-based financing frictions, allowing firms to smooth out temporary disruptions to the availability of finance …