Corporate Debt Maturity and the Real Effects of the 2007 Credit Crisis

@inproceedings{Almeida2012CorporateDM,
  title={Corporate Debt Maturity and the Real Effects of the 2007 Credit Crisis},
  author={H. Almeida and Murillo Campello and Bruno Laranjeira and Scott J. Weisbenner},
  year={2012}
}
  • H. Almeida, Murillo Campello, +1 author Scott J. Weisbenner
  • Published 2012
  • Economics
  • We use the August 2007 crisis episode to gauge the causal effect of financial contracting on real firm behavior. We identify heterogeneity in financial contracting at the onset of the crisis by exploiting ex-ante variation in long-term debt maturity structure. Using a difference-in-differences matching estimator approach, we find that firms whose long-term debt was largely maturing right after the third quarter of 2007 cut their investment-to-capital ratio by 2.5 percentage points more (on a… CONTINUE READING
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