McGraw, Patricia A.; Panyagometh, Kamphol; Roberts, … - In: Research in finance, (pp. 221-244). 2006
We extend Diamond's (1989, 1991) life-cycle hypothesis to posit that, once they reach the stage of bank borrowing, firms begin with prime loans and evolve toward borrowing more cheaply at LIBOR as they grow larger, less risky and less characterized by asymmetric information. We conduct...