Why Do Firms Borrow Directly from Nonbanks?

We thank especially Rene Stulz for his valuable suggestions and also Gus De Franco, Daniel Green, Rustom Irani, Ivan Ivanov, Jessica Jeffers, Candace Jens, Elena Loutskina, Ben McCartney, Don Morgan, Philipp Schnabl, Jeremy Stein, Amir Sufi, Adi Sunderam, Mike Weisbach, and seminar participants at 2019 AFA Meetings and Cavalcade, 2018 EFA Meetings, 2018 FDIC-JFSR Banking Research Conference, Boston College, Federal Reserve Bank of Cleveland, HEC Paris, Koc University, NBER Corporate Finance Meeting, Peking University GSM, Tsinghua PBCSF, Tulane University, and UMass Amherst for helpful comments. This research has been funded in part by the National Center for the Middle Market. Emily Braverman, Daniel Brennan, Alex Denman-Still, Yifeng Gu, Farrah Kharche, Yimeng Li, Kateryna Parke, Bianca Pelletti, Mutian Rui, and Shiyao Zhang provided excellent research assistance. An older version of this paper was distributed with the title “Nonbank Lending.” Internet Appendix is available at https://www.dropbox.com/s/jxy8iuzsy1fmxn5/NonbankLendingInternetAppendix.docx?dl=0. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• data appendix

• November 13, 2019