Using a lender cutoff rule that generates plausibly exogenous variation in credit supply, I investigate a new channel through which funding shocks are transmitted to the real economy. Based on a sample of more than 15,000 loan applications from small- and medium-sized enterprises, I find that...

Based on a unique dataset taken from the internal credit rating database of a large German bank we investigate capital structure determinants of German small and medium sized firms for a period of 2000 to 2014. In this economically favorable period for German small and medium sized firms with...