Horváth, Bálint L.Demirguc-Kunt, AsliHuizinga, Harry2016-02-012016-02-012016-01https://hdl.handle.net/10986/23703This paper examines how the ability to access long-term debt affects firm-level growth volatility. The analysis finds that firms in industries with stronger preference to use long-term finance relative to short-term finance experience lower growth volatility in countries with better-developed financial systems, as these firms may benefit from reduced refinancing risk. Institutions that facilitate the availability of credit information and contract enforcement mitigate the refinancing risk and therefore growth volatility associated with short-term financing. Increased availability of long-term finance reduces growth volatility in crisis as well as non-crisis periods.en-USCC BY 3.0 IGORISK PROFILESCREDIT MARKETSMONETARY POLICYDEPOSITLIABILITYCHECKSACCOUNTINGOPTIMAL CONTRACTSDEPOSITSSTANDARD DEBT CONTRACTSLIQUIDATIONSTOCKLOANABLE FUNDSVALUATIONDEBTORSINTERESTTRADE CREDITSCREDIT AVAILABILITYGUARANTEESLIQUIDITY RISKSLONG-TERM FINANCEINTEREST RATEPRIVATE CREDITEXCHANGESTOCK MARKETBANKING SYSTEMAVAILABILITY OF CREDITLIQUIDITYDEVELOPING COUNTRIESTOTAL DEBTPOLITICAL ECONOMYMATURITY STRUCTUREEQUITY SECURITIESPOSITIVE COEFFICIENTCAPITAL STRUCTUREMORTGAGELIQUIDITY RISKDEPOSIT MONEY BANKSBONDSDEBT CONTRACTSBORROWERSBOND FINANCINGCREDIT TRANSACTIONSCENTRAL BANKSBANKRUPTCYCREDITORSINTERNATIONAL BANKCASH FLOWSPROVISION OF CREDITSAFETY NETSCREDIBILITYFINANCIAL FRAGILITYMATURITYEXTERNAL FINANCESMALL BUSINESSMACROECONOMIC STABILITYLONG-TERM DEBTMARKET DEVELOPMENTLONG- TERM DEBTENFORCEMENT OF CONTRACTSMORAL HAZARDCONTRACT ENFORCEMENTFINANCIAL STUDIESCREDIT BUREAUSDEBTSCONTRACTSRISK-FREE RETURNLIQUIDITY CONSTRAINTSCASH RESERVESMARKETSDEBTLONG TERM DEBTRETURNDEPOSIT INSURANCELENDERSBUSINESS CYCLEACCOUNTS RECEIVABLELOANSRESERVESBANK CREDITMONETARY AUTHORITIESLEGAL FRAMEWORKFINANCEBAILOUTEXPENDITURETRANSACTIONSDEBT FINANCINGBANKRUPTCY LAWSEQUITYMACROECONOMIC INSTABILITYDEBT RATIOVALUE OF ASSETSCREDIT CONSTRAINTSASSET VALUEGOODDISCLOSURE STANDARDSOWNERSHIP STRUCTURETRANSPARENCYMARKET CAPITALIZATIONMARKET FAILURESMARKET DATAFINANCIAL CRISISSHORT- TERM DEBTFUTURERETURNSTREASURY BILLSSHORT-TERM DEBTBOND MARKETCONTRACTCAPITALIZATIONREPAYMENTEXPENDITURESCREDIT INFORMATIONDEBT SECURITIESLIQUIDITY MANAGEMENTFIRM PERFORMANCECORPORATE INVESTMENTBALANCE SHEETMARKETMATURITY MATCHINGMARKET VALUESECURITIESTREASURYLONG-TERM INVESTMENTSSHAREHOLDERSMATURITY STRUCTURESINSURANCEBUSINESS CYCLESGOVERNMENT POLICIESECONOMIC DEVELOPMENTPOSITIVE COEFFICIENTSCORPORATE DEBTINVESTORFIXED ASSETSBANK LOANSFINANCIAL DEVELOPMENTACCOUNTING STANDARDSFINANCIAL MARKETMACROECONOMIC VOLATILITYINVESTMENTBONDDOMESTIC CREDITSHARESAVINGS DEPOSITSINVESTOR PROTECTIONCOLLATERALFINANCIAL MARKETSPOLITICAL STABILITYCOMPETITIVE MARKETSINSTITUTIONAL DEVELOPMENTEXTERNAL DEBTINVESTMENTSLENDINGCHECKINTEREST RATE RISKSTOCK RETURNSMATURITIESSHORT- TERM FINANCEASSETS RATIOLIABILITIESBOND MARKET DEVELOPMENTINTERNATIONAL SETTLEMENTSLONG-TERM ASSETSLEGAL RIGHTSCASH FLOWDEVELOPMENT BANKSHORT-TERM FINANCESTOCK MARKETSCREDIT MARKETBANKING MARKETDEBT MATURITYINVESTINGWorking PaperWorld Bank10.1596/1813-9450-7535