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Disclosure and the Cost of Capital : Evidence from Firms' Responses to the Enron Shock

Leuz, Christian - 2010

that have positive cost of capital shocks and larger financing needs. We also find that firms respond with additional …

Persistent link: https://www.econbiz.de/10012757529

Bigio, Saki - 2019

Financial crises are particularly severe and lengthy when banks fail to recapitalize after bearing large losses. We present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets with information asymmetries. Large equity losses...

Persistent link: https://www.econbiz.de/10012857809

Pledgeability, Industry Liquidity, and Financing Cycles

Diamond, Douglas W. - 2017

of financing cycles where the importance of creditors' control rights over cash flows (“pledgeability”) varies with …

Persistent link: https://www.econbiz.de/10012965425

Khan, B. Zorina - 2017

Scholars engage in extensive debate about the role of families and corporations in economic growth. Some propose that personal ties provide a mechanism for overcoming such transactions costs as asymmetrical information, while others regard familial connections as conduits for inefficiency, with...

Persistent link: https://www.econbiz.de/10012965431

Financing Durable Assets

Rampini, Adriano A. - 2016

This paper studies the effect of durability on the financing of durable assets. We show that more durable assets … the price of an asset and hence the overall financing need more than its collateral value. This insight has implications … dominated technologies. More durable assets are more likely to be rented given their larger financing need. Legal enforcement …

Persistent link: https://www.econbiz.de/10012989134

Customers and Investors : A Framework for Understanding Financial Institutions

Merton, Robert C. - 2015

private/public-sector guarantors of institutions, expect an appropriate risk-adjusted return in exchange for the financing and … risk-bearing that they provide. Customers of a financial intermediary, in contrast, provide financing in exchange for a …

Persistent link: https://www.econbiz.de/10013021033

Equilibrium Corporate Finance and Intermediation

Bisin, Alberto - 2014

frictions. Firms take their production, financing, and contractual decisions so as to maximize their value under rational …

Persistent link: https://www.econbiz.de/10013049698

Market Liquidity and Funding Liquidity

Pedersen, Lasse Heje - 2007

We provide a model that links an asset's market liquidity - i.e., the ease with which it is traded - and traders' funding liquidity - i.e., the ease with which they can obtain funding. Traders provide market liquidity, and their ability to do so depends on their availability of funding....

Persistent link: https://www.econbiz.de/10012777582

When Credit Bites Back : Leverage, Business Cycles, and Crises

Jordà, Òscar - 2011

This paper studies the role of credit in the business cycle, with a focus on private credit overhang. Based on a study of the universe of over 200 recession episodes in 14 advanced countries between 1870 and 2008, we document two key facts of the modern business cycle: financial-crisis...

Persistent link: https://www.econbiz.de/10013118125

Household Leverage and the Recession

Philippon, Thomas - 2011

We evaluate and partially challenge the ‘household leverage' view of the Great Recession. In the data, employment and consumption declined more in states where household debt declined more. We study a model where liquidity constraints amplify the response of consumption and employment to...

Persistent link: https://www.econbiz.de/10013126217