Dynamic corporate liquidity

• 成果类型: Article
• 署名作者: Nikolov, Boris; Schmid, Lukas; Steri, Roberto
• 署名单位: University of Lausanne; Swiss Finance Institute (SFI); Duke University; Centre for Economic Policy Research - UK; University of Lausanne; Swiss Finance Institute (SFI)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.06.018
• 发表日期: 2019
• 页码: 76-102
• 关键词: Cash; credit lines; collateral; covenants; structural estimation

摘要

In contrast to cash holdings, credit lines give firms financial flexibility by providing liquidity contingent on realized funding needs, but they are often limited by collateral and covenants. We embed this trade-off into an estimated dynamic model of financing and investment. Our model highlights the relevance of drawing down credit lines to fund investment options in an effective way and quantitatively matches well the levels and dynamics of cash, credit lines, and leverage. In the cross-section, modeling credit lines as contingent liquidity provides novel empirical predictions and rationalizes several stylized facts regarding credit line usage, covenant violations, and cash holdings. (C) 2018 Elsevier B.V. All rights reserved.