Information asymmetry and the pricing of privately placed debt

Kilian R. Dinkelaker, Andreas-Walter Mattig, Stefan Morkötter

Based on a dataset including 11,636 private debt placements issued globally between 1999 and 2016, we investigate the association between borrower-lender information asymmetry and the cost of debt for issuers. We observe that information asymmetry due to being a private or unrated firm is associated with higher cost of private debt. Our results equally inform corporate financing decisions and government initiatives aimed at promoting private debt markets in order to expand funding sources for the private sector

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Year of publication:	January 19th, 2021
Authors:	Dinkelaker, Kilian R. ; Mattig, Andreas ; Morkoetter, Stefan
Publisher:	St. Gallen : School of Finance, University of St. Gallen
Subject:	Private placement \| cost of debt \| information asymmetry \| corporate structure \| Asymmetrische Information \| Asymmetric information \| Kapitalkosten \| Cost of capital \| Börsengang \| Initial public offering \| Fremdkapital \| Debt financing \| Theorie \| Theory \| Börsenkurs \| Share price \| Unternehmensanleihe \| Corporate bond

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Extent:	1 Online-Ressource (circa 26 Seiten) Illustrationen
Series:	Working papers on finance. - Sankt Gallen, ZDB-ID 2252526-9. - Vol. no. 2021, 03
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.3777161 [DOI]
Classification:	G30 - Corporate Finance and Governance. General ; G32 - Financing Policy; Capital and Ownership Structure ; G38 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012426896