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Internal Capital Markets in Financial Conglomerates: Evidence from Small Bank Responses to Monetary Policy
This paper looks at internal capital markets in financial conglomerates by comparing the responses of small subsidiary and independent banks to monetary policy. I find that internal capital marketsExpand
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Capital Structure and Product Markets Interactions: Evidence from Business Cycles
This paper provides firm- and industry-level evidence on the effects of capital structure on product market outcomes for a large cross-section of industries. The analysis uses shocks to aggregateExpand
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The Real and Financial Implications of Corporate Hedging
We study the implications of hedging for firm financing and investment. We do so using an extensive, hand-collected dataset on corporate hedging activities. Hedging can lower the odds of negativeExpand
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Aggregate Risk and the Choice between Cash and Lines of Credit
We model corporate liquidity policy and show that aggregate risk exposure is a key determinant of how firms choose between cash and bank credit lines. Banks create liquidity for firms by poolingExpand
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Expected Returns, Yield Spreads, and Asset Pricing Tests
We construct firm-specific measures of expected equity returns using corporate bond yields, and replace standard ex postaverage returns with our expected-return measures in asset pricing tests. WeExpand
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Who Herds?
This paper develops a test for herding in forecasts by professional financial analysts that is robust to (a) correlated information amongst analysts; (b) common unforecasted industry-wide earningsExpand
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Measurement Errors in Investment Equations
We use Monte Carlo simulations and real data to assess the performance of alternative methods that deal with measurement error in investment equations. Expand
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Corporate Financial and Investment Policies When Future Financing is Not Frictionless
Much of corporate finance is concerned with the impact of financing constraints on firms. However, the literature on financing constraints largely ignores the intertemporal implications of thoseExpand
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Financing Frictions and the Substitution Between Internal and External Funds
Ample evidence points to a negative relation between internal funds (profitability) and the demand for external funds (debt issuance). This relation has been interpreted as evidence supporting theExpand
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Liquidity Mergers
We study the interplay between corporate liquidity and asset reallocation opportunities. Our model shows that financially distressed firms are acquired by liquid firms in their industries even whenExpand
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