We show that supply-side financial shocks have a large impact on the investment decisions of firms. We do this by … developing a new methodology to separate firms' credit shocks from loan supply shocks, using a vast sample of matched bank … bank loan supply net of borrower characteristics and general credit conditions -- can have large impacts on aggregate loan …

We show that supply-side financial shocks have a large impact on firms' investment. We develop a new methodology to … of aggregate loan and investment fluctuations …

We study the effect of bank loans on Chinese publicly listed firms' investment decisions based on the underinvestment … investment for Chinese publicly listed firms. And this negative relationship is much stronger for firms with low growth than … investment. However, the higher the long-term loan ratios are, the weaker the negative relationship between long-term loan ratios …

In this paper, we find that reduced credit supply reduces firm investments in our sample of small private firms. The … firms hedge against potential future credit supply shocks? (ii) did they have better access to shareholder funding? or (iii …) was the effect driven by past investment patterns? We find that access to shareholder funding during the crisis offset the …

investment and credit to the non-financial sector in the United States. Building on Montecino, Epstein, and Levina (2014) we … through a credit channel. However, we also find evidence of a structural break around the year 2000. Rolling impulse response … functions suggest the presence of two alternative regimes over the post-war period: a “capital diversion” regime in which credit …

To measure the real effects of credit-supply disruptions during financial crises, we develop a quantitative model of … firm investment and debt that features firm heterogeneity and financial frictions. We apply this framework to a novel …, census-type panel dataset for manufacturing firms and find that the contraction in credit supply during the Greek Depression …

the effect of used credit lines on R&D investments, controlling for other determinants of R&D investments, i.e., cash …, show that used credit lines have a positive and significant impact on R&D investments. In addition, we find that this … impact is more pronounced for small and young firms than for large and mature firms. These results show that firms use credit …

times of high uncertainty, firms reduce their credit demand due to delayed investments or a deterioration in their credit … worthiness, while at the same time banks are more exposed to negative shocks to their balance sheet and thereby reduce credit … supply. To isolate the uncertainty effect from the credit supply effect, we employ matched bank-firm loan data covering all …

that financial innovation crowds out credit creation. At the same time, its effect on investment seems to be significant … engineering often is done by banks and investment houses led to the creation of structured products that often compete with … tend to test this hypothesis and explore whether financial innovation crowd out consumer and corporate credit creation and …

reform increasing secured creditors' protection, to estimate the effect of enforcement on firm access to finance, investment … of secured loans, as well as a larger increase in investment and value of output in the years following the reform. To …