Macroeconomic conditions, financial constraints, and firms’ financing decisions

• Main Authors: Chang, Xin, Chen, Yunling, Dasgupta, Sudipto
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2019
• Subjects: DRNTU::Business::Finance; Debt Maturity; Capital Structure
• Online Access: https://hdl.handle.net/10356/103277; http://hdl.handle.net/10220/48010
• Institution: Nanyang Technological University

We 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 repre...