This paper uses a unique experiment conducted as part of the Investment Survey of the European Investment Bank (EIB) to … provide novel evidence on firms' preferences over loan characteristics and the relation between terms of credit and investment …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …