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Do Firms Care Who Provides their Financing? Author info | Abstract | Publisher info | Download info | Related research | Statistics Jeffrey K. MacKie-Mason
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Several types of evidence are presented to demonstrate that firms are concerned with who provides their financing, not just with the debt/equity distinction. Aggregate and industry trends and patterns in the incremental sources of financial capital are documented, and a large sample of incremental corporate financial decisions is econometrically analyzed. There are large and persistent differences in the patterns of internal and external financing, both in the aggregate and across industries. Individual firms are shown to have distinct preferences for different providers of funds. Several indicators of potentially costly hidden information problems are important and significant determinants of choices between private and publicly-marketed sources, even after controlling for the type of security (debt or equity).
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3039.
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Date of creation: Jul 1989Date of revision:
Publication status: published relationship to a non-chapter. This should not happen. Please contact NBER.Handle: RePEc:nbr:nberwo:3039Note: MEContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
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