The LLM Financial Constraints Index is an annual firm-level measure of financial constraints developed by Effi Benmelech, Nitish Kumar and Raghu Rajan. We derive the LLM Financial Constraints Index from firms’ MD&A disclosures in SEC Form 10-K filings from 1997 to 2022. We use a large language model to classify firms into three categories indicating their financial constraint status. The index is intended for academic research and is available with detailed construction below. When using the index please cite our paper “Debt and Assets.”
Please read this memo for a description of the index. The data can be downloaded here.