. Our global carry factor across markets delivers strong average returns and, while it is exposed to recession, liquidity …

does not need a high liquidity reserve, but as conditions deteriorate, it will target higher reserve. In very poor … conditions, the firm will declare bankruptcy, usually after it has depleted its liquidity reserve. Our model can predict … liquidity holdings, leverage ratios, yield spreads, expected default probabilities, expected loss given default and equity …

firms need cash in their production process and where financial shocks are made of both credit and liquidity shocks. We show … that external liquidity shocks generate a negative comovement between the cash ratio and employment. We analyze the dynamic …

This paper presents evidence supporting the theory that informational and incentive problems in capital markets affect … external financing costs and liquidity constraints. Findings support the hypothesis of greater investment sensitivity to … liquidity constraints, as well as increased investment sensitivity over time, for the group of independent firms. …

We argue that there is a connection between the interbank market for liquidity and the broader financial markets, which … has its basis in demand for liquidity by banks. Tightness in the interbank market for liquidity leads banks to engage in … what we term "liquidity pull-back," which involves selling financial assets either by banks directly or by levered …