| Author: | Carey, M. Post, M. Sharpe, S. A. |
| Title: | Does corporate lending by banks and finance companies differ? Evidence on specialization in private debt contracting |
| Journal: | Journal of Finance
1998 : JUN, VOL. 53:3, p. 845-878 |
| Index terms: | BANK LENDING COMPANIES SPECIALIZATION |
| Language: | eng |
| Abstract: | The paper establishes empirically the existence of specialization in private-market corporate lending. A new dimension to the public vs. private debt distinctions currently common in the literature is added. Comparing corporate loans made by banks and by finance companies, it is found that the two types of intermediaries are equally likely to finance information-problematic firms. The evidence found supports both reputation-based and regulatory explanations for the specialization. Also, light is shed on various theories of debt contracting and intermediation and present facts about finance companies. |
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