The choice among bank debt, non-bank private debt, and public debt: evidence from new corporate borrowings

• 成果类型: Article
• 署名作者: Denis, DJ; Mihov, VT
• 署名单位: Purdue University System; Purdue University; Texas Christian University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(03)00140-5
• 发表日期: 2003
• 页码: 3-28
• 关键词: banks; private debt; public debt; debt policy

摘要

Using a sample of 1,560 new debt financings, we examine the choice among bank debt, non-bank private debt, and public debt. The primary determinant of the debt source is the credit quality of the issuer. Firms with the highest credit quality borrow from public sources, firms with medium credit quality borrow from banks, and firms with the lowest credit quality borrow from non-bank private lenders. Non-bank private debt thus plays a unique role in accommodating the financing needs of firms with low credit quality. In addition, the choice of debt source is (weakly) influenced by managerial discretion. (C) 2003 Elsevier B.V. All rights reserved.