RT Generic
T1 Bank debt and market debt: an empirical analysis for Spanish firms
A1 Casasola, María José
A1 Tribo Gine, José Antonio
AB This paper examines the effect on the firm's banking cost of the issue of debt securities. We argue over the existence of a positive relationship between the issue of market debt and the reduction of firm's banking cost. This idea relies on three main arguments: i) Banks can delegate to investors the supervision task, a feature that makes bank supervision less costly. ii) The issue of public debt increases firms' bargaining power in front of the banks, as the former can get funds through non-bank financing ch annels. iii) Banks with no prior information on the issuing firm may interpret the issue of debt securities as a positive signal of firm's quality. Additionally, we argue that the previous effects are less important for non-first issues and are sensible to the maturity of the bond issued. We empirically test these and other related theoretical results making use of a database of Spanish non-financial firms during the 1993-1998 period. We find empirical support for our theoretical contentions.
YR 2002
FD 2002-03
LK https://hdl.handle.net/10016/135
UL https://hdl.handle.net/10016/135
LA eng
LA eng
DS e-Archivo
RD 27 jul. 2024