@techreport{NBERw5143,
 title = "The Paradox of Liquidity",
 author = "Stewart C. Myers and Raghuram G. Rajan",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5143",
 year = "1995",
 month = "June",
 URL = "http://www.nber.org/papers/w5143",
 abstract = {The more liquid a company's assets, the greater their value in a short-notice liquidation.  Liquid assets are generally viewed as increasing debt capacity, other things being equal.  This paper focusses on the dark side of liquidity: greater liquidity reduces the ability of borrowers to commit to a specific course of action.  It examines the effects of differences in asset liquidity on debt capacity.  It suggests an alternative theory of financial intermediation and disintermediation.},
}