Debt capacity, cash holdings and financial constraints
利用杠杆偏差衡量债务能力，发现现金持有与债务能力正相关，且财务约束企业持有现金更能提升债务能力、获得银行贷款。
Abstract In this study, we explore the relationship among debt capacity, cash holdings and financial constraints by using the deviation in leverage as a proxy for debt capacity. Our findings show a positive relationship between cash holdings and debt capacity. Furthermore, financially constrained firms benefit more from holding cash that leads to larger increases in debt capacity and easier access to bank loans and credit lines by reducing the heterogeneous beliefs of creditors. Our results indicate that cash holdings complement debt capacity for financially constrained firms.