UID:
edoccha_9958126542002883
Format:
1 online resource (41 p.)
ISBN:
1-4623-7303-8
,
1-4527-4107-7
,
1-283-51348-X
,
9786613825933
,
1-4519-0756-7
Series Statement:
IMF working paper ; WP/05/201
Content:
We test the implications of Flannery's (1986) and Diamond's (1991) models concerning the effects of risk and asymmetric information in determining debt maturity, and we examine the overall importance of informational asymmetries in debt maturity choices. We employ data on over 6,000 commercial loans from 53 large U.S. banks. Our results for low-risk firms are consistent with the predictions of both theoretical models, but our findings for high-risk firms conflict with the predictions of Diamond's model and with much of the empirical literature. Our findings also suggest a strong quantitative role for asymmetric information in explaining debt maturity.
Note:
"October 2005."
,
""Contents""; ""I. INTRODUCTION""; ""II. FRAMEWORK FOR THE TESTS""; ""III. EMPIRICAL LITERATURE REVIEW""; ""IV. BRIEF OUTLINE OF THE EMPIRICAL TESTS""; ""V. COMPILATION OF THE DATA SET""; ""VI. VARIABLES AND SUMMARY STATISTICS""; ""VII. EMPIRICAL TEST RESULTS""; ""VIII. ADDITIONAL EMPIRICAL CHECKS""; ""IX. CONCLUSIONS""; ""THE EFFECTS OF REDUCED INFORMATIONAL ASYMMETRIES ON DEBT MATURITY""
,
English
Additional Edition:
ISBN 1-4518-6220-2
Language:
English
