Securitization and Capital Structure in Nonfinancial Firms: An Empirical Investigation

• 成果类型: Article
• 署名作者: Lemmon, Michael; Liu, Laura Xiaolei; Mao, Mike Qinghao; Nini, Greg
• 署名单位: Hong Kong University of Science & Technology; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; Drexel University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12128
• 发表日期: 2014
• 页码: 1787-1825
• 关键词: BACKED SECURITIES; Credit ratings; finance; MARKET; determinants; WEALTH; COSTS; cash

摘要

Contrary to recent accounts of off-balance-sheet securitization by financial firms, we show that asset securitization by nonfinancial firms provides a valuable form of financing for shareholders without harming debtholders. Using data from firms' SEC filings, we find that securitization is attractive to firms in the middle of the credit quality distribution, which are the firms with the most to gain. Upon initiation, firms experience positive abnormal stock returns and zero abnormal bond returns, and largely use the securitization proceeds to repay existing debt. Securitization minimizes financing costs by reducing expected bankruptcy costs and providing access to segmented credit markets.