Collateral and the Choice Between Bank Debt and Public Debt

• 成果类型: Article
• 署名作者: Lin, Leming
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2014.2094
• 发表日期: 2016
• 页码: 111-127
• 关键词: debt structure; collateral; Bank debt; bonds; public debt; Real estate

摘要

This paper tests how collateral value affects a firm's choice between bank debt and public debt by considering the exogenous variation in the market value of a firm's real-estate assets caused by fluctuations in local real-estate prices. Using local land supply elasticities as an instrument for local real-estate prices, I estimate that a one-standard-deviation increase in collateral value causes bank debt as a fraction of total debt to increase by six percentage points.