The real effects of financial constraints
Subtitle: evidence from a financial crisis
By: Murillo Campello, John Graham, Campbell R. Harvey.
Contributors: Graham, John.; Harvey, Campbell R.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 15552; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15552.
Publisher: National Bureau of Economic Research
Published: 2009
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We survey 1,050 CFOs in the U.S., Europe, and Asia to assess whether their firms are credit constrained during the global credit crisis of 2008.  We study whether corporate spending plans differ conditional on this measure of financial constraint.  Our evidence indicates that constrained firms planned deeper cuts in tech spending, employment, and capital spending.  Constrained firms also burned through more cash, drew more heavily on lines of credit for fear banks would restrict access in the future, and sold more assets to fund their operations.  We also find that the inability to borrow externally causes many firms to bypass attractive investment opportunities, with 86% of constrained U.S.  CFO's saying their investment in attractive projects was restricted during the credit crisis of 2008.  More than half of the respondents say they will cancel or postpone their planned investment.  Our results also hold in Europe and Asia, and in many cases are stronger in those economies"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 12/22/2009.

Includes bibliographical references.

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