Determinants of the Development of Corporate Bond Markets in Argentina: Survey to Firms and Investors

Documento de Trabajo No. 345

40 Pages Posted: 1 Sep 2007

See all articles by María Alegre

María Alegre

Universidad del CEMA

Sergio Pernice

University of CEMA

Jorge M. Streb

Universidad del CEMA

Date Written: April 2007

Abstract

Conventional theory leads to expect bonds to be a financing vehicle for large firms because of economies of scale and contracting costs. In this paper we present the results for Argentina of a survey of firms and of investors on the use of corporate bonds. The result of these surveys supports the idea that for Argentine firms, bonds are a financing vehicle of choice only for firms above a certain (large) size. This is independent of the criteria used for firm size. This result is similar to results in other countries such as the United Sates.

Keywords: debt structure, leverage, short-term debt, corporate bonds, firm size, firm value

JEL Classification: G3, E6

Suggested Citation

Alegre, María and Pernice, Sergio and Streb, Jorge Miguel, Determinants of the Development of Corporate Bond Markets in Argentina: Survey to Firms and Investors (April 2007). Documento de Trabajo No. 345, Available at SSRN: https://ssrn.com/abstract=1008596 or http://dx.doi.org/10.2139/ssrn.1008596

María Alegre (Contact Author)

Universidad del CEMA ( email )

1054 Buenos Aires
Argentina

Sergio Pernice

University of CEMA ( email )

Department of Finance Cordoba 637 - Piso 3
1054 Buenos Aires
Argentina
4314-1304 (Phone)
4314-1654 (Fax)

Jorge Miguel Streb

Universidad del CEMA ( email )

Av. Cordoba 374
Buenos Aires, CABA
Argentina

HOME PAGE: http://www.ucema.edu.ar/u/jms/

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