ANATOMY OF CORPORATE BORROWING CONSTRAINTS

• 成果类型: Article
• 署名作者: Lian, Chen; Ma, Yueran
• 署名单位: University of California System; University of California Berkeley; University of Chicago
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjaa030
• 发表日期: 2021
• 页码: 229-291
• 关键词: asset fire sales; capital structure; aggregate implications; financial frictions; RISK-MANAGEMENT; Control rights; DEBT CAPACITY; credit; INVESTMENT; COSTS

摘要

Macro-finance analyses commonly link firms' borrowing constraints to the liquidation value of physical assets. For U.S. nonfinancial firms, we show that 20% of debt by value is based on such assets (asset-based lending in creditor parlance), whereas 80% is based predominantly on cash flows from firms' operations (cash flow-based lending). A standard borrowing constraint restricts total debt as a function of cash flows measured using operating earnings (earnings-based borrowing constraints). These features shape firm outcomes on the margin: first, cash flows in the form of operating earnings can directly relax borrowing constraints; second, firms are less vulnerable to collateral damage from asset price declines, and fire sale amplification may be mitigated. Taken together, our findings point to new venues for modeling firms' borrowing constraints in macro-finance studies.