The good, the bad, and the not-so-ugly of credit booms?: capital allocation and financial constraints

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dc.coverageDOI: 10.1016/j.jbankfin.2024.107098
dc.creatorBraun, Matías
dc.creatorMarcet, Francisco
dc.creatorRaddatz, Claudio
dc.date2024
dc.date.accessioned05-01-2026 18:14
dc.date.available05-01-2026 18:14
dc.description<p>We provide international empirical evidence that periods of rapid expansion in credit—credit booms—lead to both a relaxation of financial constraints and a worsening of capital allocation. These two effects are related, suggesting a more prominent role for the investor sentiment views of the credit cycle. Firms more likely to be financially constrained because of their size, industry, or country experience stronger misallocation in booms. At the macro level, credit booms with higher capital misallocation result in a higher probability of experiencing a banking crisis and poor economic and financial performance after the boom ends.</p>eng
dc.identifierhttps://investigadores.uandes.cl/en/publications/8ac9ae51-0f7a-46ae-adb3-4d82798165c6
dc.languageeng
dc.rightsinfo:eu-repo/semantics/restrictedAccess
dc.sourcevol.161 (2024) p.1-15
dc.subjectCapital allocation
dc.subjectCredit boom
dc.subjectFinancially constrained firms
dc.titleThe good, the bad, and the not-so-ugly of credit booms?: capital allocation and financial constraintseng
dc.typeArticleeng
dc.typeArtículospa
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