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Corporate Debt Structure and the Financial Crisis

De Fiore, Fiorella - 2014

We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...

Persistent link: https://www.econbiz.de/10013040533

Private Pensions as Corporate Debt

Feldstein, Martin S. - 2021

This paper begins by examining the ways in which pension liabilities are and are not like corporate bonds. Some conceptual issues involved in valuing future pension obligations are then discussed. The second section considers the advantage to firms of fully funding their pension obligations and...

Persistent link: https://www.econbiz.de/10013224994

Issuance Overpricing of China's Corporate Debt Securities

Ding, Yi; Xiong, Wei; Zhang, Jinfan - 2022

We document issuance overpricing of corporate debt securities in China, which contrasts with underpricing of equity and debt securities in Western countries. The phenomenon in China is robust across subsamples of issuances with different credit ratings, maturities, issuer types, and issuing...

Persistent link: https://www.econbiz.de/10013324538

Savings and Loan Usage of the Authority to Invest in Corporate Debt

Hendershott, Patric H. - 2010

a certainty world and then under uncertainty. Differences in servicing and transactions costs, in default losses, in tax … treatment and in the timing of payments are accounted for in a certain world. SLAs are seen as investing in bonds only if the … uncertain world, mortgages will command a premium over bonds to compensate for the prepayment option extended mortgage borrowers …

Persistent link: https://www.econbiz.de/10012762925

The Mystery of Zero-Leverage Firms

Strebulaev, Ilya A. - 2012

This paper documents the puzzling evidence that a substantial number of large public non-financial US firms follow a zero-debt policy. Over the 1962-2009 period, on average 10.2% of such firms have zero debt and almost 22% have less than 5% book leverage ratio. Neither industry nor size can...

Persistent link: https://www.econbiz.de/10013108257

Did Securitization Affect the Cost of Corporate Debt?

Nadauld, Taylor D. - 2011

This paper investigates whether the securitization of corporate bank loans had an impact on the price of corporate debt. Our results suggest that loan facilities that are subsequently securitized are associated with a 15 basis point lower spread than that of loans that are not subsequently...

Persistent link: https://www.econbiz.de/10013128899

What Determines the Structure of Corporate Debt Issues?

Julio, Brandon - 2008

Publicly-traded debt securities differ on a number of dimensions, including quality, maturity, seniority, security, and convertibility. Finance research has provided a number of theories as to why firms should issue debt with different features; yet, there is very little empirical work testing...

Persistent link: https://www.econbiz.de/10012773126

Dynamic Debt Maturity

He, Zhiguo - 2016

A firm chooses its debt maturity structure and default timing dynamically, both without commitment. Via the fraction of newly issued short-term bonds, equity holders control the maturity structure, which affects their endogenous default decision. A shortening equilibrium with accelerated default...

Persistent link: https://www.econbiz.de/10013000527

Do Taxes Affect Corporate Debt Policy? Evidence from Us Corporate Tax Return Data

Gordon, Roger H. - 2001

Past attempts to measure the impact of taxes on corporate debt policy have focused on larger firms. Given that the top statutory corporate tax rate has varied little in recent years, tax incentives vary among these firms, almost entirely due to current or prospective tax losses. Results are...

Persistent link: https://www.econbiz.de/10012788150

Does the Source of Capital Affect Capital Structure?

Faulkender, Michael - 2010

Empirical examinations of capital structure have led some to conclude that firms are under-levered. Implicit in this argument and much of the empirical work on leverage is the assumption that the availability of incremental capital depends solely on the risk of the firm's cash flows and...

Persistent link: https://www.econbiz.de/10012762780