An Empirical Analysis of the Determinants of Corporate Debt Ownership Structure

Direct Versus Intermediated Finance: An Old Question and a New Answer

“…Hence, the credit volume is decreasing in the expected return and increasing in the default risk. The latter result is consistent with the observation that the proportion of bank debt is increasing in credit risk (see, for example, James, 1987 andJohnson, 1997). 5…”

Homogeneidade Versus heterogeneidade da estrutura de dívida: um estudo com dados em painel

“…The inverse of such characteristics are related to borrowers from banks (Denis and Mihov, 2002;Diamond, 1991;Johnson, 1997;Nakamura, 1993). As a result, companies' debt structures tend to concentrate on or specialize in a specific source of debt, which is defined from the set of characteristics of borrowing companies.…”

“…However, all of these studies show that theoretical models generally treat debt capital as though it is formed from a single source of funds (Rauh & Sufi, 2010;Johnson, 1997) and thus fail to observe that a company's debt structure can consist of several fundraising instruments that are distinct from one another. It should be noted that debt instruments differ from one another in various aspects, such as source of funds, maturity, collateral, accessibility, priority of receipt and impact on cash flow, transaction costs, incentives to managers, and others.…”

“…It should be noted that debt instruments differ from one another in various aspects, such as source of funds, maturity, collateral, accessibility, priority of receipt and impact on cash flow, transaction costs, incentives to managers, and others. By treating debt from third parties as a uniform source of funds, these differentiating features are ignored, although in reality they are potentially relevant to understanding the way in which companies structure their debt (Denis & Mihov, 2002;Johnson, 1997;Rauh & Sufi, 2010;Colla, Ippolito, & Li, 2012).…”

“…Rauh and Sufi (2010, p.2) reinforce this argument by stating that "correlations shown in the literature between leverage rates and firm characteristics vary significantly when the components of debt are analyzed separately". Thus, although it is possible to find a meaningful theoretical framework that underpins the argument of debt heterogeneity (Park, 2000;Bolton & Freixas, 2000;DeMarzo & Fishman, 2007;David, Obrien, & Yoshikawa, 2008;Johnson, 1997;Denis & Mihov, 2002;Chemma-nur & Fulghieri, 1994;Diamond, 1991;Faulkender & Petersen, 2006;Rauh & Sufi, 2010;Lucinda, 2004;Figueiredo, 2007), most studies on capital structure still treat third-party capital as a homogeneous source of funds. The recognition of the existence of heterogeneity in debt structure can bring a new perspective to the study of capital structure, thus enriching the literature on this subject.…”