The Choice Between Public and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan

Hoshi, Takeo; Kashyap, Anil; Scharfstein, David

doi:10.3386/w4421

Cited by 185 publications

(178 citation statements)

References 0 publications

Supporting

Mentioning

155

Contrasting

Unclassified

Order By: Relevance

“…In this respect, the theory of financial intermediation tends to emphasise that banks and markets compete, so that growth in one is at the expense of the other (Allen and Gale (1997) and Boot and Thakor (2008)). Some recent literature also analyses potential complementarities between bank lending and capital market funding (Diamond (1991), Hoshi et al (1993) and Song and Thakor (2008)). Most of these results are also directly applicable to the comparison of funding via syndicated loans as opposed to funding through the corporate bond market.…”

Section: Ecb Working Paper Series No 1028mentioning

confidence: 99%

“…There is extensive theoretical literature concerned with the coexistence of bank lending and direct bond financing (Besanko and Kanatas (1993), Hoshi et al (1993), Chemmanur and Fulghieri (1994), Boot and Thakor (2000), Holmstrom and Tirole (1997) and Bolton and Freixas (2000)). In this respect, the theory of financial intermediation tends to emphasise that banks and markets compete, so that growth in one is at the expense of the other (Allen and Gale (1997) and Boot and Thakor (2008)).…”

Section: Ecb Working Paper Series No 1028mentioning

confidence: 99%

See 1 more Smart Citation

Large debt financing: syndicated loans versus corporate bonds

Altunbaş

Kara

Marqués-Ibáñez

2010

The European Journal of Finance

View full text Add to dashboard Cite

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. Abstract 4 Non-technical summary 5 Terms of use: Documents in

show abstract

Section: Ecb Working Paper Series No 1028mentioning

confidence: 99%

Section: Ecb Working Paper Series No 1028mentioning

confidence: 99%

Large debt financing: syndicated loans versus corporate bonds

Altunbaş

Kara

Marqués-Ibáñez

2010

The European Journal of Finance

View full text Add to dashboard Cite

show abstract

“…See also Denis and Mihov (2003), Hoshi, Kashyap, and Scharfstein (1993), Houston and James (1996), and Carey, Post, and Sharpe (1998) on the choice between public and private debt. syndicated loan market structure (Esty and Megginson (2004); Giannetti and Laeven (2012); Giannetti and Yafeh (2012)).…”

mentioning

confidence: 99%

Mind the Gap: The Difference between U.S. And European Loan Rates

et al. 2016

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. AbstractWe analyze differences in the pricing of syndicated loans between U.S. and European loans. For credit lines, U.S. borrowers pay significantly higher spreads, but also lower fees, resulting in similar total costs of borrowing in both markets. For term loans, U.S. firms pay significantly higher spreads. While European firms across the rating spectrum issue terms loans, only low quality U.S. firms rely on term loans. U.S. issuers perform worse after loan origination compared to European issuers, which explains 30% of the spread differential. Increasing loan supply by institutional lenders in the U.S. since 2003 eventually fully removed the term loan pricing gap.JEL-Classification: G30, G20, G15

show abstract

“…10 Consequently, the borrower may reduce its total funding cost by accessing both the bank-credit market and the financial market. Diamond (1991) and Hoshi, Kashyap and Scharfstein (1993) further develop arguments highlighting the complementarity of bank lending and capital market funding. Hoshi, Kashyap and Scharfstein (1993) show that bank lending exposes borrowers to monitoring, which may serve as a certification device that facilitates simultaneous capital market funding.…”

mentioning

confidence: 99%

“…Diamond (1991) and Hoshi, Kashyap and Scharfstein (1993) further develop arguments highlighting the complementarity of bank lending and capital market funding. Hoshi, Kashyap and Scharfstein (1993) show that bank lending exposes borrowers to monitoring, which may serve as a certification device that facilitates simultaneous capital market funding. 11 Dia mond (1991) shows that borrower may want to borrow first from banks in order to establish sufficient credibility before accessing the capital markets.…”

mentioning

confidence: 99%

The Competitive Challenge in Banking

Boot

Schmeits

2005

SSRN Journal

View full text Add to dashboard Cite

The increasingly competitive environment poses challenges to bankers. This paper emphasizes relationship banking as a prime source of the banks' comparative advantage. The proliferation of transaction-oriented banking (trading and financial market activities) does however seriously challenge relationship banking.Competition from financial markets may well destabilize (traditional) durable relationships. However, we argue that, contrary to what many believe, banks may optimally respond by increasing relationship-specific investments. These observations echo the insights generated by fundamental research in the area of financial intermediation, and seem consistent with banks' recent strategic choices. We subsequently analyze the implications for the competitive positioning of banks. To this end, we discuss the rationales and empirical evidence regarding the recent consolidation and conglomeration trend in the financial sector, and the implications for both the industrial structure and the optimal internal organization of banks. We also discuss the potential disaggregation of the value chain via joint ventures or outsourcing.JEL Classification: G20, G21

show abstract

The Choice Between Public and Private Debt: An Analysis of Post-Deregulation Corporate Financing in Japan

Cited by 185 publications

References 0 publications

Large debt financing: syndicated loans versus corporate bonds

Large debt financing: syndicated loans versus corporate bonds

Mind the Gap: The Difference between U.S. And European Loan Rates

The Competitive Challenge in Banking

Contact Info

Product

Resources

About