Local Crowding‐Out in China
ABSTRACT In China, between 2006 and 2013, local public debt crowded out the investment of private firms by tightening their funding constraints while leaving state‐owned firms' investment unaffected. We establish this result using a purpose‐built data set for Chinese local public debt. Private firms invest less in cities with more public debt, with the reduction in investment larger for firms located farther from banks in other cities or more dependent on external funding. Moreover, in cities where public debt is high, private firms' investment is more sensitive to internal cash flow.
Banking on Deposits: Maturity Transformation without Interest Rate Risk
Itamar Drechsler, Alexi Savov, Philipp Schnabl · Journal of Finance
Lazy Prices
Lauren Cohen, Christopher J. Malloy, Quoc Hung Nguyen · Journal of Finance
Weathering Cash Flow Shocks
James Robert Brown, Matthew Gustafson, Ivan Ivanov · Journal of Finance
Corporate Control around the World
Gur Aminadav, Elias Papaioannou · Journal of Finance
Bank Market Power and Monetary Policy Transmission: Evidence from a Structural Estimation
YIFEI WANG, Toni M. Whited, Yufeng Wu, Kairong Xiao · Journal of Finance
Rising Intangible Capital, Shrinking Debt Capacity, and the U.S. Corporate Savings Glut
Antonio Falato, Dalida Kadyrzhanova, Jae Sim, Roberto Steri · Journal of Finance
Predictably Unequal? The Effects of Machine Learning on Credit Markets
Andreas Fuster, Paul Goldsmith-Pinkham, Tarun Ramadorai, Ansgar Walther · Journal of Finance
Tracking Retail Investor Activity
Ekkehart Boehmer, Charles M. Jones, Xiaoyan Zhang, Xinran Zhang, XINRAN ZHANG, XINRAN ZHANG · Journal of Finance