|
|
|
|
||||
|
||||
Debt SpecializationKai LiUniversity of British Columbia - Sauder School of Business; China Academy of Financial Research (CAFR) Paolo CollaBocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research; Bocconi University - BAFFI - Paolo Baffi Centre on Central Banking and Financial Regulation Filippo IppolitoUniversitat Pompeu Fabra - Faculty of Economic and Business Sciences September 6, 2012 AFA 2012 Chicago Meetings Paper Journal of Finance, Forthcoming Abstract: This paper examines debt structure using a new and comprehensive database on types of debt employed by public U.S. firms. We find that 85% of the sample firms borrow predominantly with one type of debt, and the degree of debt specialization varies widely across different subsamples — large rated firms tend to diversify across multiple debt types, while small unrated firms specialize in fewer types. We suggest several explanations for why debt specialization takes place, and show that firms employing few types of debt have higher bankruptcy costs, are more opaque, and lack access to some segments of the debt markets.
Number of Pages in PDF File: 49 Keywords: debt specialization, debt structure, commercial paper, revolving credit facilities, term loans, senior bonds and notes, subordinate bonds and notes, capital leases JEL Classification: G32 Accepted Paper SeriesDate posted: March 19, 2011 ; Last revised: September 7, 2012Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo2 in 0.734 seconds
