The Choice between Bank Debt, Non-Bank Private Debt and Public Debt
Download or Read eBook The Choice between Bank Debt, Non-Bank Private Debt and Public Debt PDF written by Vassil T. Mihov and published by . This book was released on 2002 with total page 42 pages. Available in PDF, EPUB and Kindle.
| Author | : Vassil T. Mihov |
| Publisher | : |
| Total Pages | : 42 |
| Release | : 2002 |
| ISBN-10 | : OCLC:1290401937 |
| ISBN-13 | : |
| Rating | : 4/5 (37 Downloads) |
Book Synopsis The Choice between Bank Debt, Non-Bank Private Debt and Public Debt by : Vassil T. Mihov
Book excerpt: Using a sample of 1,560 new debt financings, we examine the choice among bank debt, non-bank private debt, and public debt. The primary determinant of the debt source is the credit qualit y of the issuer. Firms with the highest credit quality borrow from public sources, firms with medium credit quality borrow from banks, and firms with the lowest credit quality borrow from non-bank private lenders. Non-bank private debt thus plays a unique role in accommodating the financing needs of firms with low credit quality. In addition, the choice of debt source is (weakly) influenced by managerial discretion.
