Aggregate US bank lending to firms expands following several adverse macroeconomic
shocks, such as the outbreak of COVID-19 or a monetary policy tightening. Using loan-level …

Unexpectedly severe winter weather, which is arguably exogenous to firm and bank
fundamentals, represents a significant cash flow shock for bank‐borrowing firms. Firms …

Against the background of the great financial crisis, this paper assesses the merits of bank-
based versus market-based financing by exploring the relationship between financial …

Do banks give their relationship borrowers (“friends”) better lending terms than others when
these “friends” are “in need”? We find the answer is “No” using identification from negative …

The perception of the pass-through of oil price shocks on the real and financial spheres has
undergone considerable evolution with the emergence of a literature devoted to the sources …

We provide the first empirical evidence that zombie firms—highly levered firms with weak
growth prospects—are not a prominent feature of the US economy and that US banks do not …

The unprecedented fiscal and monetary policy support in the wake of the COVID-19
pandemic has brought to the fore concerns that cheap credit could fuel the financing of …

We exploit the 2011 EBA Capital exercise, a quasi-natural experiment that required a
number of banks to increase their regulatory capital. This experiment makes secured …

We show that private equity (PE) buyouts enable firms to borrow against cash flows, thereby
raising borrowing capacity. Unlike comparable non PE-backed firms that primarily use asset …

Using the exogenous event of oil price sharp decline in 2014–2015, this paper employs the
difference‐in‐difference method to establish a causal link between the oil price decline and …