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 …

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 …

This study examines the consequences of loan denials for the investment performance of small and medium-sized German … investment than non-innovative companies. The non-randomness of loan denials is controlled for with a selection equation … mezzanine capital, when facing a loan denial. -- Investment ; loan availability ; innovation ; private equity …