dc.contributor.authorChang, Xin
dc.contributor.authorChen, Yunling
dc.contributor.authorDasgupta, Sudipto
dc.date.accessioned2019-04-11T02:35:25Z
dc.date.available2019-04-11T02:35:25Z
dc.date.copyright2019
dc.date.issued2018
dc.identifier.citationChang, X., Chen, Y., & Dasgupta, S. (2019). Macroeconomic conditions, financial constraints, and firms’ financing decisions. Journal of Banking & Finance, 101242-255. doi:10.1016/j.jbankfin.2018.10.016en_US
dc.identifier.issn0378-4266en_US
dc.identifier.urihttp://hdl.handle.net/10220/48010
dc.description.abstractWe examine how time-varying macroeconomic conditions affect firms’ financing decisions. A principal components decomposition of several macroeconomic variables characterizes three phases of the business cycle relative to recessions: early recovery, robust recovery, and economic crest; a fourth represents “windows of opportunity” in capital markets that are unrelated to recessions. This characterization yields results that traditional approaches miss. Specifically, debt issuance exhibits a non-monotonic pattern during the upward phase of the business cycle: it declines in robust recovery relative to recessions but peaks at the economic crest. Financially constrained firms issue more equity during windows of high stock market valuation, whereas unconstrained firms time debt issuance in response to debt market spreads.en_US
dc.format.extent53 p.en_US
dc.language.isoenen_US
dc.relation.ispartofseriesJournal of Banking and Financeen_US
dc.rights© 2018 Elsevier. All rights reserved. This paper was published in Journal of Banking and Finance and is made available with permission of Elsevier.en_US
dc.subjectCapital Structureen_US
dc.subjectDebt Maturityen_US
dc.subjectDRNTU::Business::Financeen_US
dc.titleMacroeconomic conditions, financial constraints, and firms’ financing decisionsen_US
dc.typeJournal Article
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.identifier.doihttp://dx.doi.org/10.1016/j.jbankfin.2018.10.016
dc.description.versionAccepted versionen_US
dc.identifier.rims209794


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