{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,6]],"date-time":"2026-07-06T11:15:13Z","timestamp":1783336513161,"version":"3.54.6"},"reference-count":53,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"7","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2026,7]]},"abstract":"<jats:p>Firms often respond to information about investor demand, learned when underwriters build the book to place corporate bonds, by \u201cupsizing\u201d the offering amount. We examine the factors that predict two measures of realized credit supply (oversubscription and yield tightening) and show that the unexpected component of credit supply can explain firms\u2019 upsizing decisions. Because firms\u2019 fundamentals and need for capital are unchanged in the few hours of bookbuilding, upsizing provides a bond-level measure that can be used to study the impact of credit supply on postissuance leverage and investment. Firms use the sizeable additional proceeds to reduce bank debt and increase cash holdings; net increases in leverage are temporary for riskier issuers. Our evidence does not support concerns of overinvestment in periods of accommodative credit markets.<\/jats:p>\n                  <jats:p>This paper was accepted by Bo Becker, finance.<\/jats:p>\n                  <jats:p>Supplemental Material: The online appendix and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2023.00153 .<\/jats:p>","DOI":"10.1287\/mnsc.2023.00153","type":"journal-article","created":{"date-parts":[[2025,10,21]],"date-time":"2025-10-21T15:42:47Z","timestamp":1761061367000},"page":"5780-5805","source":"Crossref","is-referenced-by-count":1,"title":["Firms\u2019 Response to Credit Supply: Evidence from Upsized Corporate Bond Offerings"],"prefix":"10.1287","volume":"72","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-3345-2244","authenticated-orcid":false,"given":"Edith","family":"Hotchkiss","sequence":"first","affiliation":[{"name":"Seidner Department of Finance, Boston College, Chestnut Hill, Massachusetts 02467"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Hurong","family":"Sun","sequence":"additional","affiliation":[{"name":"School of Economics and Management, Xichang University, Xichang, Sichuan 615013, China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-4631-1766","authenticated-orcid":false,"given":"Liying","family":"Wang","sequence":"additional","affiliation":[{"name":"Department of Finance, University of Nebraska-Lincoln, Lincoln, Nebraska 68588"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-0245-1062","authenticated-orcid":false,"given":"Yijia (Eddie)","family":"Zhao","sequence":"additional","affiliation":[{"name":"Department of Accounting and Finance, University of Massachusetts-Boston, Boston, Massachusetts 02125"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhae027"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1002\/9781119541929"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12082"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00414"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhab092"},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1016\/j.jmoneco.2013.10.002"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12199"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2020.07.004"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2022.08.001"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2019.3556"},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1017\/S002210902100065X"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhr143"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhx132"},{"key":"B14","doi-asserted-by":"publisher","DOI":"10.1111\/1540-6261.00572"},{"key":"B15","unstructured":"Darmouni O, Siani K (2022) Bond market stimulus: Firm-level evidence from 2020-21. 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