I examine the separate roles of persistent and transitory earnings shocks in explaining price momentum. I find that transitory shocks have significant explanatory power, suggesting financial constraints may be important for momentum firms. In a liquidity management model that accounts for both...

Using granular data on home builder housing developments from the 2006-09 housing crisis, I show that builders spread house price shocks across geographically distinct projects via their internal capital markets. Builders who experience losses in one area subsequently sell homes in unaffected...

This paper examines the impact of managerial ability on corporate financial constraints. Based on a large sample of Chinese listed companies during the 2007-2019 period, we find that managerial ability is negatively associated with corporate financial constraints. We also find that managerial...

The pricing of financing credit for SMEs under government credit enhancement is an important pattern to solve the financing difficulties of SMEs. Using the data of SMEs credit guarantee fund from Wenzhou, this paper studies the cost of credit under government credit enhancement from three...

This paper evaluates the effectiveness of easing credit constraints for rural producers in Mexico through loans provided by a national public development finance institution (DFI). In contrast to most of the existing literature, the study focuses on the effect of medium-sized loans over a two-...

We study optimal taxation in an economy with financial frictions, in which the government cannot directly redistribute towards the agents in need of liquidity but otherwise has access to a complete set of linear tax instruments. We establish a stark result. Provided this is feasible, optimal...

This paper evaluates the effectiveness of easing credit constraints for rural producers in Mexico through loans provided by a national public development finance institution. In contrast to most of the existing literature, the study focuses on the effect of medium-sized loans over a two- to...