This paper empirically investigates how the intensity of product market competitionaffects the cost of debt. Using a large sample of loans to publicly traded US manufac-turing fi…rms, I provide evidence that an intensi…fication of product market competitionamong fi…rms signifi…cantly...

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm's marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher bargaining power in default, operating in more competitive...

This paper empirically shows that the cost of bank debt is systematically higher for firms that operate in competitive product markets. Using various proxies for product market competition, and reductions of import tariff rates to capture exogenous changes to a firm's competitive environment, I...

This paper empirically shows that the cost of bank debt is systematically higher for firms that operate in competitive product markets. Using various proxies for product market competition, and reductions of import tariffs to capture exogenous changes to a firm's competitive environment, I find...