We study how debt market frictions that constrain the ability of firms to buffer a tightening in bank credit supply affect corporate yield spreads. We focus on the frictions driven by the regional availability of debt financing. We provide evidence of a strong regional segmentation in the debt...

We study how the relative availability of bond and bank financing supply affects the firm's ability to borrow and to use its leverage to buffer shocks. We define a measure that proxies for the regional borrowing inflexibility in the availability of bank and bond financing: “debt...

We study how lender-shareholder distance affects loan contract terms. We hypothesize that an increase in lender-shareholder distance aggravates the lender's information asymmetry vis-à-vis shareholders by making it difficult to observe shareholders' risk preferences and their influence on...

This study examines how banks respond to the operational weather risk of borrowers. We quantify borrower-specific operating exposure to cumulative unexpected weather conditions and study how it affects the pricing and non-pricing features of loan contracts. We find that banks increase loan...

This study examines how banks respond to the operational weather risk of borrowers. We quantify borrower-specific operating exposure to cumulative unexpected weather conditions and study how it affects the pricing and non-pricing features of loan contracts. We find that banks increase loan...