The Shift in Firms’ Reliance on Debt Sources

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aut.relation.endpage35
aut.relation.journalApplied Finance Letters
aut.relation.startpage31
aut.relation.volume8
dc.contributor.authorHo, Tu Cam
dc.date.accessioned2023-06-09T01:11:16Z
dc.date.available2023-06-09T01:11:16Z
dc.date.issued2019-05-20
dc.description.abstractStructural changes in capital market and information innovations have altered characteristics of debt sources, make them more or less favourable to firms. This could possibly lead to a shift in firms' reliance on debt sources. Using a unique data set of debt mix of 1,100 U.S. non-financial firms, I conduct data analysis to reveal changes in firms' preference for different debt sources over a decade from 2004 to 2014. I find that bank debt remains the most common source of borrowing, followed by public debt and finally private placement debt. In addition, over time, firms have become more reliant on bank and public debt while less reliant on private placement debt. This pattern is consistent across different industries.
dc.identifier.citationApplied Finance Letters, ISSN: 2253-5799 (Print); 2253-5802 (Online), Auckland University of Technology (AUT) Library, 8, 31-35. doi: 10.24135/afl.v8i0.141
dc.identifier.doi10.24135/afl.v8i0.141
dc.identifier.issn2253-5799
dc.identifier.issn2253-5802
dc.identifier.urihttps://hdl.handle.net/10292/16232
dc.publisherAuckland Centre for Financial Research
dc.relation.urihttps://ojs.aut.ac.nz/applied-finance-letters/article/view/141
dc.rights.accessrightsOpenAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject3502 Banking, Finance and Investment
dc.subject35 Commerce, Management, Tourism and Services
dc.subject1502 Banking, Finance and Investment
dc.subject3502 Banking, finance and investment
dc.titleThe Shift in Firms’ Reliance on Debt Sources
dc.typeJournal Article
pubs.elements-id505529
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