Bank Lines of Credit in Corporate Finance: An Empirical Analysis

By Amir Sufi. 2009

903 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/bc688f4014b31f4e9bd070973aec6bb4bb34b164

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Citations in the corpus

Bank Liquidity Creation (2009, neutral): “39 Sufi (2007) uses data on letters of credit and loan commitments over 1996–2003, which corresponds closely with our sample period, and finds that conditional on having a letter of credit or a loan commitment, the probability of drawdown over this time period was approximately 30% in every year.”
The Employment Effects of Credit Market Disruptions: Firm-level Evidence from the 2008–9 Financial Crisis (2014, background): “…equilibrium where lending to the same borrower helps to overcome the moral hazard problem inherent to lead lenders recruiting participants (Sufi 2007b; Holmstrom and Tirole 1997), or a decline in ex ante (due diligence) or ex post (costly state verification) monitoring costs for repeat…”
Credit Lines as Monitored Liquidity Insurance: Theory and Evidence (2012, positive): “Following Sufi(2009) we also construct a measure of the amount of undrawn credit expressed as a percentage of net book assets. Following Lemmon, Roberts and Zender (2008), we compute a set of firm characteristics such as profitability, market-to-book (M/B) and tangibility.”
The Determinants of REIT Cash Holdings (2009, neutral): “Finally, as shown by Sufi (2008) , access to private bank debt is an indicator of the degree of financial constraint facing a firm.”
The Supply-Side Determinants of Loan Contract Strictness (2012, methodology): “Roberts and Sufi (2009a) use regression discontinuity to show that covenant violations result in sharp and persistent declines in net debt issuance.”
Capital Structure and Debt Structure (2010, neutral): “20 See Sufi (2009) for more information on the regulations that require the reporting of financial covenant violations, and how these data are collected from the SEC filings.”
Trade Credit, the Financial Crisis, and SME Access to Finance (2013, neutral): “Cash flow could affect loan supply through its importance in covenants such as those on coverage ratios (Sufi 2009).”
Access to financing and firm growth (2011, positive): “To the extent that access to a bank credit facility is a more statistically powerful measure of financing constraints (Sufi, 2009), this finding also suggests that as external financing constraints are alleviated, the firm relies less on internal funds and switches to external financing as its prima”
The Dynamics of Cash (2010, background): “…lines of credit, and leverage, three areas that were studied extensively in the context of cash holdings (e.g., Acharya, Almeida, and Campello (2007), Dittmar and Mart-Smith (2007), Harford, Mansi, and Maxwell (2008), Sufi (2009)), are systematically related to the cross-sectional variation in SOA.”
Do U.S. firms hold more cash than foreign firms do (2016, background): “firms is from Sufi (2009), which shows that they represent about 16% of total assets. Lins, Servaes, and Tufano (2010) show that lines of credit are about 15% of total assets in their sample composed of more than 90% of foreign firms.”
A theory of corporate financial decisions with liquidity and solvency concerns (2011, neutral): “Consequently, any necessary funds 9 Khurana, Martin, and Pereira (2006) and Sufi (2009) find further supporting evidence.”
The total costs of corporate borrowing in the loan market: Don't ignore the fees (2015, background): “For example, Roberts and Sufi (2009) report an unconditional likelihood of renegotiation of 9.1% per quarter, of which 4.2% are early terminations.”
Financial Constraints, Investment, and the Value of Cash Holdings (2010, neutral): “Sufi (2009) finds that firms with available bank lines of credit exhibit lower cash flow sensitivities of cash.”
Accounting Information in Financial Contracting: The Incomplete Contract Theory Perspective (2016, positive): “Surveys on financial contracting by Hart (2001) and Roberts and Sufi (2009b) have also reviewed the literature on incomplete contract theory, but they primarily focus on corporate-finance-related issues.”