Collateral, debt capacity, and corporate investment: Evidence from a natural experiment

• 成果类型: Article
• 署名作者: Gan, Jie
• 署名单位: Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2006.06.007
• 发表日期: 2007
• 页码: 709-734
• 关键词: Collateral; INVESTMENT; financial constraints; bubbles; cost of external financing

摘要

This paper examines how a shock to collateral value influences firms' debt capacities and investments. Using a source of exogenous variation in collateral value provided by the land market collapse in Japan, I find that collateral has a statistically and economically significant impact on corporate investments. I also provide direct evidence on the workings of such a collateral channel. Exploiting a unique dataset of matched bank-firm lending, I show that firms with greater collateral losses are less likely to sustain their banking relationships and tend to obtain a smaller amount of bank credit. (c) 2007 Elsevier B.V. All rights reserved.