We present novel empirical evidence on the use of off-balance sheet financing by publiclytraded, U.S. nonfinancial firms. We find that about 5 percent of nonfinancial firms reported using a special purpose financing vehicle (SPV) to finance receivables in 2006. At the origination of the off-balance sheet financing program, firms experienced abnormal increases in stock prices on the order of 2 p...

The papers attempt to validate/invalidate economic growth sustainability vis-à-vis external financing of budget in Nigeria. channels - multilateral, Paris Club, London promissory notes, bilateral, Euro bond, diaspora debts, and others were tracked relation sustainability. data is accessed from Emission Database for Global Atmospheric Research [EDGAR], the World Bank Development Indicator (WDI),...

Using a cross-country firm-bank dataset, we examine how an unexpected increase in bank capital requirements by the European Banking Authority affects firms' financial choices. We find that regulatory shock implies reduction supply of credit, with US firms affected most. Yet, can tap into public bond markets and secure credit lines from nonbank institutions. This has implications for their struc...

We show that introducing an external capital market with information asymmetry into a product market model reduces opportunistic substitution of sub-standard goods and encourages producers to concentrate on long-run reputation building. We test this result with a laboratory experiment. We find that, when the problem of product market opportunism is moderate, i.e., reputation formation equilibri...

Propagation in equilibrium models of search unemployment is significantly altered when vacancy costs require some external financing on frictional credit markets. The easing of financing constraints during an expansion reduces the opportunity cost of resources allocated to job creation, raising the elasticity of market tightness through (i) a cost channel, increasing incentive to recruit for a ...

In a multi-industry growth model, firms require external funds to conduct productivityenhancing R&D, and are limited by financing constraints. The cost of research differs across industries, so financing constraints hinder productivity growth in some industries more than in others. Equilibrium industry dynamics map into a differences-indifferences regression specification where industry growth ...

Theory makes ambiguous predictions about the effects of bank market structure on access to external finance. Using a unique database for 74 countries and for firms of small, medium and large size we assess the effect of banking market structure on the access of firms to bank finance. We find that bank concentration increases financing obstacles, but only in countries with low levels of economic...