David S. Scharfstein

TL;DR: In this paper, the authors examine some of the forces that can lead to herd behavior in investment and discuss applications of the model to corporate investment, the stock market, and decision making within firms.

TL;DR: In this paper, the authors develop a general framework for analyzing corporate risk management policies and argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.

TL;DR: In this paper, a general framework for analyzing corporate risk management policies is developed, and the authors argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.

TL;DR: This article showed that new loans to large borrowers fell by 47% during the peak period of the financial crisis (fourth quarter of 2008) relative to the prior quarter and by 79% relative to peak of the credit boom (second quarter of 2007).

TL;DR: In this article, the authors present evidence suggesting that information and incentive problems in the capital market affect investment and highlight the role of financial intermediaries in the investment process, and conclude that investment is more sensitive to liquidity for the second set of firms than for the first set.