Debt Specialization

Colla, Paolo La; Ippolito, Filippo; Li, Kai

doi:10.2139/ssrn.1833423

Cited by 83 publications

(233 citation statements)

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“…Unfortunately, many bidders do not have bond rating. This is consistent with findings of Colla, Ippolito, and Li (2013), which demonstrate that only about 60% of firms have Standards and Poor's (S&P) bond rating. Utilizing only the observations with available bond rating data for both the target and the bidder would reduce both our sample and statistical accuracy.…”

Section: Article In Presssupporting

confidence: 91%

Dual ownership, returns, and voting in mergers

Bodnaruk

Rossi

2016

Journal of Financial Economics

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Section: Article In Presssupporting

confidence: 91%

Dual ownership, returns, and voting in mergers

Bodnaruk

Rossi

2016

Journal of Financial Economics

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“…Capital IQ classifies debt into seven exclusive types: commercial paper, revolving credit, term loans, senior bonds and notes, subordinated bonds and notes, capital leases, and other debt. Using Capital IQ data, Colla et al (2013) provide one of the first large sample studies on the patterns and determinants of debt structure. As in Colla et al (2013), the Capital IQ sample used in this paper starts in 2002, when the coverage of Capital IQ becomes comprehensive.…”

Section: Debt Structure Datamentioning

confidence: 99%

“…Using Capital IQ data, Colla et al (2013) provide one of the first large sample studies on the patterns and determinants of debt structure. As in Colla et al (2013), the Capital IQ sample used in this paper starts in 2002, when the coverage of Capital IQ becomes comprehensive. Merging Capital IQ data with the Compustat-CRSP data and real-estate price data leaves me with 15 550 firm-year observations for 2 220 firms.…”

Section: Debt Structure Datamentioning

confidence: 99%

“…Merging Capital IQ data with the Compustat-CRSP data and real-estate price data leaves me with 15 550 firm-year observations for 2 220 firms. I follow Colla et al (2013) to remove firm-years for which the difference in total debt reported in Compustat and Capital IQ exceeds 10% of total debt. Table 1 reports the average fraction of debt classified as bonds (sum of senior and subordinated bonds) and bank debt (sum of revolving credit and term loans).…”

Section: Debt Structure Datamentioning

confidence: 99%

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Collateral and the Choice Between Bank Debt and Public Debt

Lin

2016

Management Science

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T his paper tests how collateral value affects a firm's choice between bank debt and public debt by considering the exogenous variation in the market value of a firm's real-estate assets caused by fluctuations in local real-estate prices. Using local land supply elasticities as an instrument for local real-estate prices, I estimate that a one-standard-deviation increase in collateral value causes bank debt as a fraction of total debt to increase by six percentage points.

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“…This seems reasonable as the average loan proportion in my sample is 84.00 % as shown inTable 3. Additionally, in a recent study,Colla et al (2013) find that 85 % of firms have one predominant debt source.…”

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confidence: 96%

Challenging the payment effect in bank-financed takeovers

Fischer

2015

J Manag Control

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In the context of bank-financed takeovers, I examine the influence of loans and their characteristics on the success of acquisitions. The unique setting of matched syndicated loans allows me to forego the regular assumption in academic literature of cash payment being equal to debt financing. Consequently, I am able to distinguish between the payment effect and the financing effect of an acquisition. My three main findings are: (i) Payment method is just an estimator of the debt proportion in takeovers. Although percentage of cash has significant explanatory power to account for the sources of financing, variation still remains. (ii) Controlling for the real financial structure renders the payment method insignificant. Hence, the well-known outperformance of cash payment around the announcement of a takeover might actually just be an outperformance of debt-financed takeovers. (iii) Bank-financed acquisitions are associated, on average, with positive abnormal returns for acquirers' stockholders. Higher bank involvements-approximated by greater deal leverage, higher loan costs, longer maturity, lower interest coverage, or no previous banking relationship-are signals for a more successful takeover.

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Debt Specialization

Cited by 83 publications

References 0 publications

Dual ownership, returns, and voting in mergers

Dual ownership, returns, and voting in mergers

Collateral and the Choice Between Bank Debt and Public Debt

Challenging the payment effect in bank-financed takeovers

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