Access to Capital, Capital Structure, and the Funding of the Firm

• 成果类型: Article
• 署名作者: Brav, Omer
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2008.01434.x
• 发表日期: 2009
• 页码: 263-308
• 关键词: TESTING STATIC TRADEOFF; pecking order models; corporate-control; STRUCTURE CHOICE; voting-rights; Dividends; debt; acquisitions; INVESTMENT; equity

摘要

Based upon a large data set of public and private firms in the United Kingdom, I find that compared to their public counterparts, private firms rely almost exclusively on debt financing, have higher leverage ratios, and tend to avoid external capital markets, leading to a greater sensitivity of their capital structures to fluctuations in performance. I argue that these differences are due to private equity being more costly than public equity. I further examine the private firms subsample to show that private equity is more costly than its public counterpart due to information asymmetry and the desire to maintain control.