@article{47c35737483a4ae29e9c8a4373d9b312,
title = "Liquidity risk and maturity management over the credit cycle",
abstract = "We show that firm demand-side factors are strong drivers of procyclical refinancing behavior over the credit cycle using novel data from the Shared National Credit program. Firms are more likely to refinance early when credit conditions are good to keep the effective maturity of their loans long and hedge against having to refinance in tight credit conditions. High credit quality firms are better able to hedge, making their refinancing propensity more sensitive to credit cycles than less creditworthy firms. There is a strong relationship between refinancing a loan, and subsequent growth in capital expenditure, especially when a loan is refinanced early.",
keywords = "Liquidity risk, Loan refinancing, Maturity management",
author = "Atif Mian and Santos, {Jo{\~a}o A.C.}",
note = "Funding Information: We thank an anonymous referee, Michael Roberts, Dwight Jaffee, Amir Sufi, Nancy Wallace, Martin Cherkes, Tim Adam, Phil Strahan, Vish Viswanathan, seminar participants at U.C. Berkeley (Haas), Singapore Management University, Federal Reserve Board, NBER Summer Institute, State University of New York at Binghamton, Washington University's Annual conference on Corporate Finance & Financial Intermediation, EFA, WFA, and FIRS meetings for very helpful comments and suggestions. We thank Vitaly Bord for exceptional research assistance throughout this project. Mian gratefully acknowledges the Coleman Fung Center for funding. The results or views expressed in this study are those of the authors and do not necessarily reflect those of the Federal Reserve Bank of New York or the Federal Reserve System or the Coleman Fung Center. Publisher Copyright: {\textcopyright} 2017",
year = "2018",
month = feb,
doi = "10.1016/j.jfineco.2017.12.006",
language = "English (US)",
volume = "127",
pages = "264--284",
journal = "Journal of Financial Economics",
issn = "0304-405X",
publisher = "Elsevier",
number = "2",
}