Creditor Rights

Working Paper

Uncertainty, Access to Debt, and Firm Precautionary Behavior

Better access to debt markets mitigates the effects of uncertainty on corporate policies. We establish this result using the staggered introduction of anti-recharacterization laws in U.S. states. These laws enhanced firms’ ability to borrow by...Read more

Giovanni Favara
Janet Gao
Mariassunta Giannetti
19 June 2020