Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153462
Authors: 
Altunbas, Yener
Kara, Alper
Marqués-Ibáñez, David
Year of Publication: 
2009
Series/Report no.: 
ECB Working Paper 1028
Abstract: 
Following the introduction of the euro, the markets for large debt financing experienced a historical expansion. We investigate the financial factors behind the issuance of syndicated loans for an extensive sample of euro area non-financial corporations. For the first time we compare these factors to those of its major competitor: the corporate bond market. We find that large firms, with greater financial leverage, more (verifiable) profits and higher liquidation values tend to prefer syndicated loans. In contrast, firms with larger levels of short-term debt and those perceived by markets as having more growth opportunities favour financing through corporate bonds.
Subjects: 
corporate bonds
debt choice
syndicated loans
the euro
JEL: 
D40
F30
G21
Document Type: 
Working Paper

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