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dc.contributor.authorMay, Anthony D.
dc.date.accessioned2015-02-14T16:42:32Z
dc.date.available2015-02-14T16:42:32Z
dc.date.issued2014-12
dc.identifier.citationMay, Anthony D. 2014. Corporate liquidity and the contingent nature of bank credit lines: Evidence on the costs and consequences of bank default. Journal of Corporate Finance, vol. 29:pp 410–429en_US
dc.identifier.issn0929-1199
dc.identifier.otherWOS:000347265500022
dc.identifier.urihttp://dx.doi.org/10.1016/j.jcorpfin.2014.10.001
dc.identifier.urihttp://hdl.handle.net/10057/11068
dc.descriptionClick on the DOI link to access the article (may not be free).en_US
dc.description.abstractI study the impact of Lehman Brothers' bankruptcy and resultant inability to honor its obligations as a lender under committed credit lines. Firms that lost access to a credit line committed by Lehman Brothers experienced abnormal stock returns of -3%, on average, on the day of and day after Lehman's bankruptcy filing, amounting to roughly $5.7 billion in aggregate, risk-adjusted losses. These losses were significantly larger for firms that were more financially constrained, firms with less cash, firms for whom Lehman was a lead-bank, and firms that lost access to larger amounts of committed credit. During the four quarters immediately following Lehman's collapse, firms that lost access to a credit line cut their investment spending significantly while simultaneously hoarding more cash than comparable firms. Overall, these findings indicate that firms that lost access to a credit line incurred economically significant costs and real-side consequences as a result of Lehman's default on its loan commitments.en_US
dc.language.isoen_USen_US
dc.publisherElsevier B.V.en_US
dc.relation.ispartofseriesJournal of Corporate Finance;v.29
dc.subjectCredit lineen_US
dc.subjectCorporate liquidityen_US
dc.subjectLoan commitmenten_US
dc.titleCorporate liquidity and the contingent nature of bank credit lines: Evidence on the costs and consequences of bank defaulten_US
dc.typeArticleen_US
dc.rights.holderCopyright © 2014 Elsevier B.V. All rights reserved.


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