The global financial crisis had detrimental consequences for banks’ balance sheets, as well as for their funding costs and profitability, thus weighing negatively on their ability to supply new loans. As a result, banks tightened credit standards for all borrowers, including non-financial corporations. The restricted access to bank funding for the corporate sector induced the latter to seek oth...

I demonstrate that non-financial corporations act as cross-market arbitrageurs in their own securities. Firms use one type of security to replace another in response to shifts in relative valuations, inducing negatively-correlated financing flows in different markets. Net equity repurchases and net debt issuance both increase when the expected returns on debt are particularly low, or when the e...

Banking competition may enhance or hinder the financing of small and medium-sized enterprises. Using a survey on the financing of such enterprises in China, combined with detailed bank branch information, we investigate how concentration in local banking market affects the availability of credit. We find that lower market concentration alleviates financing constraints. The widespread presence o...

Financial institutions are financed by both investors and customers. Investors expect an appropriate risk-adjusted return for providing financing and risk bearing. Customers, in contrast, provide financing in exchange for specific services, and want the service fulfillment to be free of the intermediary’s credit risk. We develop a framework that defines the roles of customers and investors in i...

We show that easier access to mortgage credit significantly increases house prices by using exogenous changes in the conforming loan limit as an instrument for easier credit supply and cheaper cost of credit. We find that houses that become eligible for financing with a conforming loan show an increase in house value of 1.1 dollars per square foot (for an average price per square foot of 224 do...

in the context of international trade factoring as one of the important ways of financing, is a dominant method of asset based financing for small and medium enterprises. financing through factoring be done in the form of a contract between the creditor and factor, and determining the legal nature of this contract is important to identify and determine its effects. with this regard, this paper ...

Traders are often blamed for high prices, prompting government regulation. We study the effects of a ban layer financing intermediaries in edible oil supply chain Bangladesh during 2011–2012. Contrary to predictions standard model an oligopolistic chain, caused downstream wholesale and retail prices rise, pass-through changes imported crude price fall. These results can be explained by extensio...

The controversy over whether investment-cash flow sensitivity is a good indicator of financing constraints is still unresolved. We tackle it from several different angles and cross-validate our analysis with both balance sheet and qualitative data on self-declared credit rationing and financing constraints. Our qualitative information shows that (self-declared) credit rationing is (weakly) rela...

We examine the impact of cross-prefectural differences in financial integration on the regional spread of Japan’s Great Recession in the early 1990s. In prefectures with many small manufacturing firms, post-1990 growth was significantly lower if low levels of banking integration with the rest of the country before 1990 existed. The least financially integrated and most credit-dependent prefectu...