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Debt financing choices: theory and evidence from Europe

2017-03-10Preprint Open access
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dc.contributor.authorPinto, João
dc.contributor.authorSantos, Mário C.
dc.date.accessioned2021-11-19T18:20:51Z
dc.date.available2021-11-19T18:20:51Z
dc.date.issued2017-03-10
dc.description.abstractWe examine the factors that influence borrower’s choice between structured finance (SF) and straight debt finance (SDF). Using a sample of 12,075 Western European loans and bonds issued between 2000 and 2011, we find that borrowers choose SF when they seek long-term financing and funding cost reduction. Our results document that floatation costs, information asymmetry, and renegotiation and liquidation risks affect non-financial firms’ financing decisions. We also find that banks choose securitization to raise relatively large amounts of debt and improve economic performance. Our overall findings support hypotheses of SF as mechanism for asymmetric information problem and principal-agent conflict reduction.pt_PT
dc.description.versioninfo:eu-repo/semantics/submittedVersionpt_PT
dc.identifier.urihttp://hdl.handle.net/10400.14/36007
dc.language.isoengpt_PT
dc.peerreviewednopt_PT
dc.subjectDebt financing choicept_PT
dc.subjectSecurity designpt_PT
dc.subjectLoan and bond pricingpt_PT
dc.subjectStructured financept_PT
dc.subjectProject financept_PT
dc.subjectAsset securitizationpt_PT
dc.subjectAsset securitizationpt_PT
dc.subjectFinancial crisispt_PT
dc.titleDebt financing choices: theory and evidence from Europept_PT
dc.typepreprint
dspace.entity.typePublication
rcaap.rightsopenAccesspt_PT
rcaap.typepreprintpt_PT

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