Lines of credit in corporate finance: A post-global-crisis case study

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Lines of credit in corporate finance: A post-global-crisis case study

Corporate Finance

Corporate finance is a popular module taken as part of many finance degrees, and it’s an area that students regularly choose to focus on for their dissertations. Take a look at our topic suggestions we’ve listed to guide you in selecting your own dissertation subject.

Example corporate finance dissertation topic 1:

Lines of credit in corporate finance: A post-global-crisis case study

This dissertation evaluates the decision making factors that lead organisations and firms to use either cash or bank lines of credit in corporate liquidity management. In so doing issues relating to viable liquidity substitutes are investigated as well as the need for firms to maintain high cash flows.  The dissertation suggests that firms need to maintain high cash flows if they are to remain compliant with covenants, and that banks restrict access to credit facilities where firms are found guilty of covenant violations. This is a highly topical dissertation that can be moulded to a number of global arenas.

Suggested initial topic reading:

  • Demiroglu, C. and James, C. (2011) ‘The use of banklines of credit in corporate liquidity management: A review of empirical evidence’, Journal of Banking & Finance, Vol. 35(4), pp. 775-782.
  • Sufi, A. (2009) ‘Bank lines of credit in corporate finance: An empirical analysis’, The Review of Financial Studies, Vol. 22(3), pp. 1057-1088.