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The benefit of being public: Evidence from survival analysis of corporate financing

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  • Takashi Yoshida

Abstract

This study empirically investigates the most typical benefit of being public (i.e., having listed firm status), namely, ease of financing. Applying the Cox proportional hazards model to the data of Japanese public and private firms from 1999 to 2011, I find that being public enhances a firm's responsiveness of debt issuance, debt retirement, and equity increase to the deviation of the actual leverage from the estimated target leverage. I argue that the enhancement in the responsiveness of these financing decisions provides evidence on the ease of financing that results from being public.

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  • Takashi Yoshida, 2021. "The benefit of being public: Evidence from survival analysis of corporate financing," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 44(4), pages 839-874, December.
    • Handle: RePEc:bla:jfnres:v:44:y:2021:i:4:p:839-874
    DOI: 10.1111/jfir.12265
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