We document a negative (positive) relationship between firm performance and changes in the ownership of large (small) institutional investors. Small investors "exit'' while blockholders increase their holdings following poor performance. We find evidence that large investors increase ownership...

I construct a structural model in which firms maximize value conditional on being restricted from issuing equity and unsecured debt. Using GMM estimation, I find that a model with both equity and debt constraints fits better than models without constraints or with only one constraint. The...

Despite substantial debt relief to HIPC Initiative completion point countries, long-term debt sustainability remains a challenge. This paper examines a number of structural factors affecting external debt sustainability. It shows that in HIPC completion point countries (i) the export base...

In this note, we show that the key driver of the 2019:Q1 increase in the leverage ratio appears to be a change in accounting rules – which requires the inclusion of operating leases as financial liabilities on U.S. corporations' balance sheets – and also provide a methodology for adjusting...

Corporate financing conditions have been rapidly evolving during the COVID-19 outbreak. In this short note, we report a timely measure of financing conditions obtained from machine-reading of earnings conference call transcripts. We find that actions consistent with financial concerns spiked...