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| Author: | Altunbas, Y.(et al.) |
| Title: | Large debt financing: syndicated loans versus corporate bonds |
| Journal: | European Journal of Finance
2010 : JUL-SEP, VOL. 16:5-6, p. 437-458 |
| Index terms: | syndicated loans bonds euro debt financing markets models |
| Freeterms: | corporate large companies profits debt choice specification |
| Language: | eng |
| Abstract: | The paper investigates the financial factors behind the issuance of syndicated loans for an extensive sample of euro area non-financial corporations. The author compares these factors to those of its major competitor: the corporate bond market. It is found that large firms, with greater financial leverage, more (verifiable) profits and higher liquidation values tend to choose syndicated loans. In contrast, firms with more short-term debt and those perceived by markets as having more growth opportunities favour financing through corporate bonds. It is suggests that syndicated loans are the preferred instrument at the extreme where firms are very large, profitable but have less growth opportunities. |
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