We study the impact of a financial transaction tax (FTT) in a model that combines asset trade and real investment. An informed trader holds private information about the fundamental value of a firm and the firm's manager relies on the asset price to infer such information and invest accordingly....

In the leveraged loan sector, firms borrowing from non-banks have worse profitability and lower investment following loan origination, than observably similar firms borrowing from banks. Further, we find that non-banks are more likely to impose Capex restrictions. The effects are absent in the...