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 …

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 …

points: 1) since only tangible capital can be pledged as collateral, a shift toward intangible capital shrinks firms' debt …

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 …

collateral constraints and endogenous entry and exit. A defining feature of our model is a non-Gaussian process of firm …

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 …

collateral, a shift toward greater reliance on intangible capital shrinks the debt capacity of firms and leads them to optimally …