Berrospide, Jose M.; Meisenzahl, Ralf R. - Federal Reserve Board (Board of Governors of the … - 2015
Do firms use credit line drawdowns to finance investment? Using a unique dataset of 467 COMPUSTAT firms with credit … lines, we study the purpose of drawdowns during the 2007-2009 financial crisis. Our data show that credit line drawdowns had …. Using an instrumental variable approach based on institutional features of credit line contracts, we find that a one …