Showing 1 - 10 of 10,304
This paper tests how collateral value affects a firm's choice between bank debt and public debt by considering the … increase in collateral value causes bank debt as a fraction of total debt to increase by 6 percentage points …
Persistent link: https://www.econbiz.de/10012905379
In this paper, we investigate the economy-wide effects of the collateral channel by exploiting: (i) a legal reform in … Sweden in 2004 that reduced collateral values, and (ii) a dataset that covers all incorporated firms in Sweden over the … period 2000-2006. We find that the loss in collateral value reduces both the amount and the maturity of firm debt and leads …
Persistent link: https://www.econbiz.de/10012988601
How does government borrowing affect corporate financing and investment? This paper focuses on the role that government debt plays in providing a safe and liquid store of value to the private sector. In the data, I show that firms interact with the market for government debt in two ways: first,...
Persistent link: https://www.econbiz.de/10012850870
points: 1) since only tangible capital can be pledged as collateral, a shift toward intangible capital shrinks firms' debt …
Persistent link: https://www.econbiz.de/10012852047
adverse selection (AS). In particular, we study how the level of such exemption affects the role of collateral depending on … higher for borrowers who are requested to post collateral. Moreover, conditional on posting collateral, the cost of credit … does not change with the level of asset exemption. Differently, in the case of AS, the decision to post collateral results …
Persistent link: https://www.econbiz.de/10012862259
collateral constraints and endogenous entry and exit. A defining feature of our model is a non-Gaussian process of firm …
Persistent link: https://www.econbiz.de/10011756140
This paper studies the effects of making corporate sector assets eligible as collateral for central bank borrowing …. Banks are willing to pay collateral premia on assets if they become eligible as collateral. Collateral premia make debt … collateral supply, firm responses also have a negative effect: higher debt issuance makes corporate bonds riskier in future …
Persistent link: https://www.econbiz.de/10012663068
collateral, a shift toward greater reliance on intangible capital shrinks the debt capacity of firms and leads them to optimally …
Persistent link: https://www.econbiz.de/10012938237
We consider loan guarantees and security token offerings (STOs). If information is symmetric, STOs are better than loan guarantees. Under asymmetric information we identify the highest equity price making imitation unprofitable. A pooling (separating) equilibrium is reached through loan...
Persistent link: https://www.econbiz.de/10013306083
Using new quarterly U.S. data for the past 120 years, I show that sudden reversals in equity and credit market sentiment approximated by several measures of corporate securities issuance are highly predictive of banking crises and recessions. Deviations in equity issuance from historical...
Persistent link: https://www.econbiz.de/10012431742