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First-time corporate bond issuers in Italy

Author

Listed:
  • Matteo Accornero

    (Bank of Italy)

  • Paolo Finaldi Russo

    (Bank of Italy)

  • Giovanni Guazzarotti

    (Bank of Italy)

  • Valentina Nigro

    (Bank of Italy)

Abstract

The paper looks at the characteristics of Italian non-financial firms that accessed the bond market for the first time between 2002 and 2013. The results of logit estimations indicate that first-time bond issuers are significantly larger and more frequently listed on the stock exchange than firms not issuing bonds. We also find that their decision to enter the bond market stems from a need to finance growth, especially where internal resources are limited, and to rebalance maturity mismatches between assets and liabilities. Our estimates also suggest that the sharp drop in the number of small issuers during the economic crisis is partly due to increased risk aversion on the part of market investors. Based on the econometric results, we estimate that the non-issuers include some 450-650 firms whose characteristics are very similar to those of companies that have begun to issue bonds in the last decade. These estimates are surrounded by considerable uncertainty due to the evolution of the macroeconomic context as well as the effects of new rules on minibonds.

Suggested Citation

  • Matteo Accornero & Paolo Finaldi Russo & Giovanni Guazzarotti & Valentina Nigro, 2015. "First-time corporate bond issuers in Italy," Questioni di Economia e Finanza (Occasional Papers) 269, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_269_15
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    References listed on IDEAS

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    Cited by:

    1. Matteo Accornero & Paolo Finaldi Russo & Giovanni Guazzarotti & Valentina Nigro, 2018. "Missing Investors in the Italian Corporate Bond Market," Questioni di Economia e Finanza (Occasional Papers) 450, Bank of Italy, Economic Research and International Relations Area.
    2. Claire Giordano & Marco Marinucci & Andrea Silvestrini, 2016. "Investment and investment financing in Italy: some evidence at the macro level," Questioni di Economia e Finanza (Occasional Papers) 307, Bank of Italy, Economic Research and International Relations Area.
    3. Alessandra Iannamorelli & Stefano Nobili & Antonio Scalia & Luana Zaccaria, 2021. "Asymmetric Information and Corporate Lending: Evidence from SMEs Bond Markets," EIEF Working Papers Series 2105, Einaudi Institute for Economics and Finance (EIEF), revised Mar 2021.
    4. Cappiello, Lorenzo & Holm-Hadulla, Fédéric & Maddaloni, Angela & Mayordomo, Sergio & Unger, Robert & Arts, Laura & Meme, Nicolas & Asimakopoulos, Ioannis & Migiakis, Petros & Behrens, Caterina & Moura, 2021. "Non-bank financial intermediation in the euro area: implications for monetary policy transmission and key vulnerabilities," Occasional Paper Series 270, European Central Bank.
    5. Alessandra Iannamorelli & Stefano Nobili & Antonio Scalia & Luana Zaccaria, 2020. "Asymmetric information in corporate lending: evidence from SME bond markets," Temi di discussione (Economic working papers) 1292, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    bond market; debt financing; corporate bonds;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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