Short-Term Debt as Bridge Financing: Evidence from the Commercial Paper Market

• 成果类型: Article
• 署名作者: Kahl, Matthias; Shivdasani, Anil; Wang, Yihui
• 署名单位: University of Texas System; University of Texas Austin; University of North Carolina; University of North Carolina Chapel Hill; Fordham University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12216
• 发表日期: 2015
• 页码: 211-255
• 关键词: LOAN COMMITMENT CONTRACTS; corporate-finance; capital structure; Control rights; liquidity; credit; determinants; INFORMATION; INVESTMENT; maturity

摘要

We analyze why firms use nonintermediated short-term debt by studying the commercial paper (CP) market. Using a comprehensive database of CP issuers and issuance activity, we show that firms use CP to provide start-up financing for capital investment. Firms' CP issuance is driven by a desire to minimize transaction costs associated with raising capital for new investment. We show that firms with high rollover risk are less likely to enter the CP market, borrow less CP, and borrow more from bank credit lines. Further, CP is often refinanced with long-term bond issuance to reduce rollover risk.