How Does Long-Term Finance Affect Economic Volatility?

This paper examines how the ability to access long-term debt affects firm-level growth volatility. The analysis finds that firms in industries with stronger preference to use long-term finance relative to short-term finance experience lower growth...

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Bibliographic Details
Main Authors:	Demirguc-Kunt, Asli, Horváth, Bálint L., Huizinga, Harry
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	RISK PROFILES CREDIT MARKETS MONETARY POLICY DEPOSIT LIABILITY CHECKS ACCOUNTING OPTIMAL CONTRACTS DEPOSITS STANDARD DEBT CONTRACTS LIQUIDATION STOCK LOANABLE FUNDS VALUATION DEBTORS INTEREST TRADE CREDITS CREDIT AVAILABILITY GUARANTEES LIQUIDITY RISKS LONG-TERM FINANCE INTEREST RATE PRIVATE CREDIT EXCHANGE STOCK MARKET BANKING SYSTEM AVAILABILITY OF CREDIT LIQUIDITY DEVELOPING COUNTRIES TOTAL DEBT POLITICAL ECONOMY MATURITY STRUCTURE EQUITY SECURITIES POSITIVE COEFFICIENT CAPITAL STRUCTURE MORTGAGE LIQUIDITY RISK DEPOSIT MONEY BANKS BONDS DEBT CONTRACTS BORROWERS BOND FINANCING CREDIT TRANSACTIONS CENTRAL BANKS BANKRUPTCY CREDITORS INTERNATIONAL BANK CASH FLOWS PROVISION OF CREDIT SAFETY NETS CREDIBILITY FINANCIAL FRAGILITY MATURITY EXTERNAL FINANCE SMALL BUSINESS MACROECONOMIC STABILITY LONG-TERM DEBT MARKET DEVELOPMENT LONG- TERM DEBT ENFORCEMENT OF CONTRACTS MORAL HAZARD CONTRACT ENFORCEMENT FINANCIAL STUDIES CREDIT BUREAUS DEBTS CONTRACTS RISK-FREE RETURN LIQUIDITY CONSTRAINTS CASH RESERVES MARKETS DEBT LONG TERM DEBT RETURN DEPOSIT INSURANCE LENDERS BUSINESS CYCLE ACCOUNTS RECEIVABLE LOANS RESERVES BANK CREDIT MONETARY AUTHORITIES LEGAL FRAMEWORK FINANCE BAILOUT EXPENDITURE TRANSACTIONS DEBT FINANCING BANKRUPTCY LAWS EQUITY MACROECONOMIC INSTABILITY DEBT RATIO VALUE OF ASSETS CREDIT CONSTRAINTS ASSET VALUE GOOD DISCLOSURE STANDARDS OWNERSHIP STRUCTURE TRANSPARENCY MARKET CAPITALIZATION MARKET FAILURES MARKET DATA FINANCIAL CRISIS SHORT- TERM DEBT FUTURE RETURNS TREASURY BILLS SHORT-TERM DEBT BOND MARKET CONTRACT CAPITALIZATION REPAYMENT EXPENDITURES CREDIT INFORMATION DEBT SECURITIES LIQUIDITY MANAGEMENT FIRM PERFORMANCE CORPORATE INVESTMENT BALANCE SHEET MARKET MATURITY MATCHING MARKET VALUE SECURITIES TREASURY LONG-TERM INVESTMENTS SHAREHOLDERS MATURITY STRUCTURES INSURANCE BUSINESS CYCLES GOVERNMENT POLICIES ECONOMIC DEVELOPMENT POSITIVE COEFFICIENTS CORPORATE DEBT INVESTOR FIXED ASSETS BANK LOANS FINANCIAL DEVELOPMENT ACCOUNTING STANDARDS FINANCIAL MARKET MACROECONOMIC VOLATILITY INVESTMENT BOND DOMESTIC CREDIT SHARE SAVINGS DEPOSITS INVESTOR PROTECTION COLLATERAL FINANCIAL MARKETS POLITICAL STABILITY COMPETITIVE MARKETS INSTITUTIONAL DEVELOPMENT EXTERNAL DEBT INVESTMENTS LENDING CHECK INTEREST RATE RISK STOCK RETURNS MATURITIES SHORT- TERM FINANCE ASSETS RATIO LIABILITIES BOND MARKET DEVELOPMENT INTERNATIONAL SETTLEMENTS LONG-TERM ASSETS LEGAL RIGHTS CASH FLOW DEVELOPMENT BANK SHORT-TERM FINANCE STOCK MARKETS CREDIT MARKET BANKING MARKET DEBT MATURITY INVESTING
Online Access:	http://documents.worldbank.org/curated/en/2016/01/25801185/long-term-finance-affect-economic-volatility http://hdl.handle.net/10986/23703