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Is the Cost of Debt Capital Higher for Younger Firms?

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Author Info
Ari Hyytinen
Mika Pajarinen

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 946.

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Length: 17 pages
Date of creation: 11 Nov 2004
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Handle: RePEc:rif:dpaper:946

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Related research
Keywords: small business finance; cost of debt capital; firm age;

Other versions of this item:

Find related papers by JEL classification:
G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Investment Policy
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ari Hyytinen & Lotta Väänänen, 2004. "Could Mr. and Mrs. Capital Market Imperfection Please Step Forward? An Empirical Analysis of Adverse Selection and Moral Hazard in Capital Markets," Discussion Papers 887, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Datta, Sudip & Iskandar-Datta, Mai & Patel, Ajay, 1999. "Bank monitoring and the pricing of corporate public debt1," Journal of Financial Economics, Elsevier, vol. 51(3), pages 435-449, March. [Downloadable!] (restricted)
  3. Allen N. Berger & Gregory F. Udell, 1998. "The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle," Finance and Economics Discussion Series 1998-15, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  4. Diamond, Douglas W, 1989. "Reputation Acquisition in Debt Markets," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 828-62, August. [Downloadable!] (restricted)
  5. Ari Hyytinen & Lotta Väänänen, 2004. "Mandatory Auditor Choice and Small Finance: Evidence from Finland," Discussion Papers 950, The Research Institute of the Finnish Economy. [Downloadable!]
  6. Pittman, Jeffrey A. & Fortin, Steve, 2004. "Auditor choice and the cost of debt capital for newly public firms," Journal of Accounting and Economics, Elsevier, vol. 37(1), pages 113-136, February. [Downloadable!] (restricted)
  7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October. [Downloadable!] (restricted)
  8. Ari Hyytinen & Mika Pajarinen, 2004. "Opacity of Young Firms: Faith or Fact?," Discussion Papers 923, The Research Institute of the Finnish Economy. [Downloadable!]
  9. Berger, Allen N & Udell, Gregory F, 1995. "Relationship Lending and Lines of Credit in Small Firm Finance," Journal of Business, University of Chicago Press, vol. 68(3), pages 351-81, July. [Downloadable!] (restricted)
  10. Petersen, Mitchell A & Rajan, Raghuram G, 1994. " The Benefits of Lending Relationships: Evidence from Small Business Data," Journal of Finance, American Finance Association, vol. 49(1), pages 3-37, March. [Downloadable!] (restricted)
  11. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michael Pfaffermayr & Matthias Stöckl & Hannes Winner, 2008. "Capital Structure, Corporate Taxation and Firm Age," Working Papers 0829, Oxford University Centre for Business Taxation. [Downloadable!]
    Other versions:
  2. Kari E.O. Alho & Ville Kaitila & Mika Widgrén, 2004. "Speed of Convergence and Relocation: New EU Member Countries Catching up with the Old," Discussion Papers 963, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  3. Jyrki Ali-Yrkkö & Monika Jain, 2005. "Offshoring Software Development - Case of Indian Firms in Finland," Discussion Papers 971, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Edvard Johansson, 2004. "Job Satisfaction in Finland - Some results from the European Community Household Panel 1996-2001," Discussion Papers 958, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Christopher Palmberg & Mika Pajarinen, 2005. "Determinants of Internationalisation through Strategic Alliances - Insights Based on New Data on Large Finnish Firms," Discussion Papers 966, The Research Institute of the Finnish Economy. [Downloadable!]
  6. Markku Stenborg, 2004. "Explaining Open Source," Discussion Papers 947, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Satu Nurmi, 2004. "Employment Dynamics and Openness to Trade in Finnish Manufacturing," Discussion Papers 956, The Research Institute of the Finnish Economy. [Downloadable!]
  8. Pekka Sulamaa & Mika Widgrén, 2005. "Economic Effects of Free Trade between the EU and Russia," Discussion Papers 969, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  9. Hannu Piekkola & Anni Heikkilä, 2004. "Active Ageing and Pension System: Finland," Discussion Papers 959, The Research Institute of the Finnish Economy. [Downloadable!]
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This page was last updated on 2009-12-8.


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