Financing Constraints and the Amplification of Aggregate Downturns

• 成果类型: Article
• 署名作者: Carvalho, Daniel
• 署名单位: University of Southern California
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhv021
• 发表日期: 2015
• 页码: 2463
• 关键词: maturity structure; Debt maturity; fire sales; liquidity; MARKET; bankruptcy; contagion; distress

摘要

This paper shows that during industry downturns, firms experience significantly greater valuation losses when their industry peers' long-term debt is maturing at the time of the shocks. Across a range of tests, the analysis addresses the endogenous determination of peer debt-maturity structure. Overall, the evidence suggests that the negative externalities financially constrained firms impose on their industry peers can significantly amplify the effects of industry downturns. The evidence also provides support for the view that these amplification effects are driven by the adverse effect that financially constrained firms have on the balance sheets of their industry peers.