In this paper, we examine how the timeliness of loan loss recognition within the banking system affects borrowers' debt structure. Using data from 55 countries, we find that more timely loan loss recognition reduces firms' reliance on bank debt, consistent with firms relying less on bank debt...

Credit default swaps (CDSs) are an effective tool to trade credit risk, and they can improve the corporate information environment. We find that firms use more public debt and less bank debt when CDSs reference their debt start trading. The results are robust to the endogeneity of CDS trading....

We examine how executive equity risk-taking incentives affect firms' choice of debt structure. Using a longitudinal sample of U.S. firms, we document that when executive compensation is more sensitive to stock volatility (i.e., has higher vega), firms reduce their reliance on bank debt...

Motivated by prior research on the informational and monitoring role of product market competition, we examine how competitive pressure affects firms' choice between bank debt and public debt. Using a sample of 3,675 U.S. firms over the period 2001–2013, we find that competitive pressure from...

This article examines the effect of multiple large shareholders (MLS) on debt choice. Using a sample of 654 French listed firms over the period 1998-2013, we find that reliance on bank debt increases with the presence and voting power of MLS. This result is robust to endogeneity concerns and to...