کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5091435 1375679 2006 22 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Why firm access to the bond market differs over the business cycle: A theory and some evidence
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Why firm access to the bond market differs over the business cycle: A theory and some evidence
چکیده انگلیسی
This paper presents a theory of firm access to the bond market in which information gathering agencies are valuable but alter the relative cost of bond financing across firms and over the business cycle. The theory builds on the assumption that information frictions prevent these agencies from rating firms correctly all of the time. As a result, the cost of bond financing becomes dependent on the state of the economy and the “quality” of the signal provided by these agencies' ratings. In addition, when the mix of bond issuers becomes riskier, as happens in recessions, bond financing becomes more expensive for mid-quality firms. Bond financing may even become more expensive to all firms, in which case mid-quality firms will be affected the most. The analysis of the bonds issued in the last two decades by American firms shows that split ratings, our proxy for the “quality” of the rating agencies' signal, do not affect the relative cost of bond financing across firms in expansions, but they do increase the relative cost of this funding source for mid-credit quality issuers in recessions.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Banking & Finance - Volume 30, Issue 10, October 2006, Pages 2715-2736
نویسندگان
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