Credit cycles and corporate investment: Direct tests using survey data on banks’ lending practices

Madsen, Jakob B.; Carrington, Sarah J.

doi:10.1016/j.jmacro.2011.12.003

Cited by 5 publications

(8 citation statements)

References 21 publications

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“…6 A further useful indicator of funding conditions would be based (as in Lown andMorgan, 2006, or Madsen andCarrington, 2012) on data from the Senior Loan Officer Opinion Survey. Such data however are not reported between 1984 and 1990.…”

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Funding Conditions, Asset Prices, and Macroeconomic Dynamics: Some U.S. Evidence

Trecroci

Vassalli

2011

SSRN Journal

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Section: Methodsmentioning

confidence: 99%

“…These connections might induce destabilizing pro-cyclicality in lending standards. In addition, there is evidence (Lown and Morgan, 2006;Madsen and Carrington, 2012) that fluctuating credit standards are useful in predicting several indicators of business activity, as well as future lending itself.…”

Section: Literaturementioning

confidence: 99%

Funding Conditions, Asset Prices, and Macroeconomic Dynamics: Some U.S. Evidence

Trecroci

Vassalli

2011

SSRN Journal

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“…Indeed, much of the work looking at international housing markets shows that there is a strong relationship between the supply of credit and the price of houses in both the short run and the long run (see Madsen & Carrington, 2012, for a detailed discussion). Firstly, several authors have looked at the relationship between equity and house prices over time from a portfolio allocation theory of investment.…”

Section: (Iii) Robustness Checksmentioning

confidence: 99%

“…Thirdly, another factor that is sure to impact on house prices is the ease of obtaining credit for house purchases in the market. Indeed, much of the work looking at international housing markets shows that there is a strong relationship between the supply of credit and the price of houses in both the short run and the long run (see Madsen & Carrington, 2012, for a detailed discussion). While Australia does not have sufficiently ample data on the willingness to supply credit for residential mortgages, information regarding the proportionate magnitude of loans towards mortgages with respect to GDP is available.…”

Section: (Iii) Robustness Checksmentioning

confidence: 99%

The Role of Tax and Subsidy Policy in Driving Australian House Prices

Carrington

Larkin

2019

Economic Record

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This paper investigates the impact of tax variables and subsidy policy on real house prices, controlling for fundamental variables. The results show that the equilibrium price of housing is negatively associated with income tax rates, but positively associated with real construction costs, real land prices and the investor share in the market. House price fluctuations around their long-run equilibrium are positively related to construction costs, land prices, and income, but negatively with income taxes. Negative gearing provisions have ambiguous effects, while stamp duty rates lack significance for house price movements on average.

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“…Credit lines and credit scale have a positive and significant impact on R&D investments (Chang et al, 2019; Guney et al, 2017). Credit policy and cycles may affect firms' cash flow and capital allocation, and firms with higher cash flows may engage more aggressively in investment behaviors (Bhuiyan & Hooks, 2019; Madsen & Carrington, 2012). Creditors' responses to credit ratings influence firms' investment decisions (Goldstein & Huang, 2020).…”

Section: Introductionmentioning

confidence: 99%

The combined impacts of fiscal and credit policies on green firm's investment opportunity: Evidences from Chinese firm‐level analysis

Chang

Liu

et al. 2021

Manage Decis Econ

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This article investigates the combined impact of fiscal and credit policies on green‐firm investment opportunities using firm‐level panel data of green industries in China. Our empirical results demonstrate that subsidies, tax rebates, and green credit loans have significantly U‐shaped nexuses with green‐firm investment opportunities: Subsidies, tax rebates, and green credit policies generate significant interactions on green‐firm investment opportunities. External financing constraints may weaken the incentive of subsidies, tax rebates, and green credit loans on green‐firm investment opportunities.

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Credit cycles and corporate investment: Direct tests using survey data on banks’ lending practices

Cited by 5 publications

References 21 publications

Funding Conditions, Asset Prices, and Macroeconomic Dynamics: Some U.S. Evidence

Funding Conditions, Asset Prices, and Macroeconomic Dynamics: Some U.S. Evidence

The Role of Tax and Subsidy Policy in Driving Australian House Prices

The combined impacts of fiscal and credit policies on green firm's investment opportunity: Evidences from Chinese firm‐level analysis

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