A Theory of Cash Flow-Based Financing with Distress Resolution

This journal contribution is published Open Access by the publisher. Follow the DOI link to retrieve a copy of the full text. A previous version of the paper was circulated under the title “A Theory of Asset- and Cash Flow-Based Financing.” We thank the editor, Thomas Chaney, and three anonymous referees. We also thank Hengjie Ai, Andres Almazan, Harry DeAngelo, William Diamond (discussant), Jason Donaldson, Mike Fishman, Niels Gormsen, Brett Green, Denis Gromb, Sebastian Gryglewicz (discussant), Sharjil Haque, Zhiguo He, Yunzhi Hu, Benjamin Iverson, Victoria Ivashina, Young Soo Jang, Paymon Khorrami (discussant), Arthur Korteweg, Ye Li, Yueran Ma, Fernando Mendo (discussant), Martin Oehmke, Loriana Pelizzon, Giorgia Piacentino, Adriano Rampini (discussant), Philipp Schnabl, Ludvig Sinander, Adi Sunderam, Elu von Thadden, Felipe Varas, Yenan Wang (discussant), Junyuan Zou (discussant) and seminar and conference participants at Northwestern Kellogg (Brownbag), SFS Cavalcade 2022, FIRS 2022, SED Meetings 2022, UNC Junior Roundtable 2022, AFA 2023, BSE Intermediation Workshop 2023, FTG Wisconsin-Madison 2023, NBER CF Fall 2023, Goetheburg Finance Conference 2024, CESifo Money Market & International Finance Conference 2024, ITAM, London Business School, Stockholm School of Economics, UCLA, University of Utah Eccles, University of Rochester Simon, USC Marshall, University of Texas Dallas, University of Texas Austin, INSEAD, Goethe University Frankfurt, University of Mannheim for helpful comments.