Bank monitoring and the pricing of corporate public debt

被引：168

作者：

Datta, S ^{[1
]}

Iskandar-Datta, M

Patel, A

机构：

[1] Bentley Coll, Dept Finance, Waltham, MA 02154 USA

[2] Suffolk Univ, Dept Finance, Boston, MA 02108 USA

[3] Wake Forest Univ, Babcock Grad Sch Management, Winston Salem, NC 27109 USA

来源：

JOURNAL OF FINANCIAL ECONOMICS | 1999年 / 51卷 / 03期

关键词：

bank cross-monitoring; public debt pricing; debt reputation; yield spreads; bond IPOs;

D O I：

10.1016/S0304-405X(98)00060-9

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

lWe examine whether the existence of a bank/firm relationship lowers the cost of public debt financing, Using a sample of first public straight debt offers, we test the cross-monitoring effect of bank debt and Diamond's (1991, Journal of Political Economy, 99, 689-721) reputation-building argument. We find that the existence of bank debt lowers the at-issue yield spreads for first public straight bond offers by about 68 basis points, on average. Consistent with Diamond's reputation-building argument, we document that firm reputation is negatively related to the at-issue yield spread for initial public debt offers. (C) 1999 Elsevier Science S.A. All rights reserved.

引用

页码：435 / 449

页数：15

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