01241nam a22001697a 4500 190311b xxu||||| |||| 00| 0 eng d 0304-405X Liquidity risk and maturity management over the credit cycle / by Atif Mian & João A.C. Santos Atif Mian & João A.C. Santos Amsterdam Elsevier February 2018 Pages 264-284 Journal of Financial Economics 127 (2) 0304-405X 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. Liquidity risk Maturity management Loan refinancing lcc SE 361334 361334 0 0 lcc 0 CL CL PER 2019-03-11 0 2019-03-11 00:00:00 2019-03-11 SE