Torn between two debt types? The role of managerial ability in a firm's choice between bank loans and public debt

被引:4
作者
Kabir, Muhammad [1 ]
Rahman, Dewan [2 ]
Jamil, Taher [3 ]
机构
[1] Univ Manitoba, Asper Sch Business, Winnipeg, MB R3T 5V4, Canada
[2] Univ Queensland St Lucia, UQ Business Sch, Brisbane 4072, Australia
[3] Univ Western Australia, UWA Business Sch, Perth 6009, Australia
关键词
Managerial ability; Bank debt; Public debt; Monitoring; Agency problem; FINANCIAL INTERMEDIATION; CORPORATE-DEBT; PRIVATE DEBT; INVESTMENT; INFORMATION; PERFORMANCE; CREDIT; REPUTATION; QUALITY;
D O I
10.1016/j.jbankfin.2024.107205
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Motivated by the theoretical literature on firms' choice between bank loans and public debt, this paper analyzes whether more able managers choose a higher fraction of public debt. We find that firms with more able managers choose a higher level of public debt. We also find that the use of public debt by more able managers is positively associated with wealth creation for shareholders and negatively associated with bankruptcy risk. Our crosssectional analyses suggest that this baseline relationship is conditional on a better information environment. We address endogeneity issues in multiple ways and run an extensive array of robustness checks. Overall, our findings are consistent with the prediction that managerial ability mitigates the information monopoly of banks.
引用
收藏
页数:17
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