Large debt financing: syndicated loans versus corporate bonds

Altunbaş, Yener; Kara, Alper; Marqués-Ibáñez, David

doi:10.1080/13518470903314394

Cited by 82 publications

(82 citation statements)

References 59 publications

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“…Those firms that do issue bonds (relative to private credit) tend to be larger, more profitable, have a higher proportion of fixed assets, and spend less on R&D. In contrast, Altunbaş et al (2009) argue that bond markets may be particularly useful for financing activities that embody forward-looking expectations. In a study of large European firms, they find that firms with more growth opportunities (measured by higher and more visible capital investment spending, which they describe as R&D investment) prefer the bond market over syndicated loans.…”

Section: External Financial Dependence -Market-based Versus Intermedimentioning

confidence: 96%

How national and international financial development affect industrial R&D

Maskus

Neumann

Seidel

2012

European Economic Review

110

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. How National and International Financial Development Affect Industrial R&D Terms of use: Documents in EconStor may AbstractWe examine the impacts of both domestic and international financial market development on R&D intensities in 22 manufacturing industries in 18 OECD countries for the period 1990-2003. We take account of such industry characteristics as the need for external financing and the amount of tangible assets. Multiple forms of domestic financial development are important determinants of R&D intensity but only foreign direct investment is significant among alternative measures of international financial development. We find the strongest effects for private bond-market capitalization, while FDI, private credit by banks, and stockmarket capitalization have similar effects in terms of magnitude.JEL-Code: F360, G100, G150, G320, O300.

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Section: External Financial Dependence -Market-based Versus Intermedimentioning

confidence: 96%

How national and international financial development affect industrial R&D

Maskus

Neumann

Seidel

2012

European Economic Review

110

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“… The development of regulated secondary loan markets and independently rated loan issuances has made syndicated loan and corporate bond markets converge as two different, but complementary sources of financing for firms (Altunbas, Alper, & Marques‐Ibañez, ). Some studies estimate that syndicated loans account for roughly one‐third of the total outstanding loans, and their relative importance has increased over time.…”

mentioning

confidence: 99%

Corporate debt maturity in developing countries: Sources of long and short‐termism

Lorente¹,

Brandao²,

Schmukler

2018

World Economy

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This paper documents to what extent firms from developing countries borrow short versus long term, using data on corporate bond and syndicated loan markets. Contrary to claims in the literature based on firm balance sheets, firms from developing countries borrow through bonds and syndicated loans at maturities similar to those obtained by developed country firms. There are relevant differences across the debt markets composing this aggregate pattern. Firms from developing countries borrow shorter term in domestic bond markets. But the differences in international issuances (accounting for most of the proceeds) are significantly smaller. Moreover, developing country firms borrow longer term in syndicated loan markets. However, only large firms from developing countries (similar in size to those from developed ones) issue bonds and syndicated loans. The short‐termism in developing countries is partly explained by a lower proportion of firms using these markets, with more firms relying on other shorter‐term instruments.

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“…() investigate the pricing effect of certification on syndicated loans and use a sample of 1,072 facilities arranged by a single arranger between 1990 and 2001 and granted to listed companies from 80 countries. Altunbas, Kara, and Marques‐Ibanez () study the determinants behind the issuance of syndicated loans versus corporate bonds by European companies. Their sample contains 226 loans and covers 1993‐2006.…”

Section: Empirical Designmentioning

confidence: 99%

Financial Institutions Network and the Certification Value of Bank Loans

Godlewski¹,

Sanditov

2017

Financial Management

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Social networks play an important role in mitigating informational frictions related to financial intermediation, especially bank lending. We investigate the effect of the network of financial institutions on the certification value of bank loans using data on syndicated loans to European companies. We find that the presence of more central leaders in a syndicate substantially increases the stock market's reaction to loan announcements. This certification value is reinforced when informational frictions are more important but vanishes when there are severe disruptions in the functioning of financial markets, such as during the financial crisis of 2008.

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Large debt financing: syndicated loans versus corporate bonds

Cited by 82 publications

References 59 publications

How national and international financial development affect industrial R&D

How national and international financial development affect industrial R&D

Corporate debt maturity in developing countries: Sources of long and short‐termism

Financial Institutions Network and the Certification Value of Bank Loans

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