National culture and the choice between bank debt and public debt

2021 ◽  
pp. 101655
Author(s):  
Andy Chui ◽  
Xiao Li ◽  
Walid Saffar
2018 ◽  
Vol 7 (2) ◽  
pp. 137-173
Author(s):  
Debapriya Bhattacharya ◽  
Zeeshan Ashraf

This article examines the sustainability of public debt in Bangladesh under alternative future scenarios based on simulation exercises for the period of FY2017 to FY2026. It adopts the debt-stabilizing primary balance approach (DPSBA) and International Monetary Fund/World Bank Debt Sustainability Framework (DSF). The findings of the former indicate that Bangladesh will be able to service its increasing public debt as long as its economic growth rate remains higher than the real interest rate payable on debt. Public debt also appears to be sustainable according to variables tested under the DSF. However, findings indicate that Bangladesh has been and would continue allocating an increasing share of its revenue to external debt repayment, creating a trade-off with investment in growth-oriented sectors. JEL Classification: H63, H68, H69, H81, G28


Author(s):  
Haosi Chen ◽  
David A. Maslar ◽  
Matthew Serfling
Keyword(s):  

2006 ◽  
Vol 41 (2) ◽  
pp. 439-453 ◽  
Author(s):  
Varouj A. Aivazian ◽  
Laurence Booth ◽  
Sean Cleary

AbstractWe find that firms that regularly access public debt (bond) markets are more likely to pay a dividend and subsequently follow a dividend smoothing policy than firms that rely exclusively on private (bank) debt. In particular, firms with bond ratings follow a traditional Lintner (1956) style dividend smoothing policy, where the influence of the prior dividend payment is very strong and the current dividend is relatively insensitive to current earnings. In contrast, firms without bond ratings flow through more of their earnings as dividends and display very little dividend smoothing behavior. In effect, they seem to follow a residual dividend policy.


2019 ◽  
Vol 34 (1) ◽  
pp. 151-173 ◽  
Author(s):  
Weiqiang Tan ◽  
Albert Tsang ◽  
Wenming Wang ◽  
Wenlan Zhang

SYNOPSIS This study examines whether and how corporate social responsibility (CSR) disclosure plays a role in firms' choices of public versus private debt financing. We find that borrowing firms with higher levels of CSR disclosure tend to rely more on public debt than private debt. Further analyses reveal that the relation between CSR disclosure and firms' reliance on public debt is stronger for borrowing firms with higher financial reporting quality, and with standalone or externally assured CSR reports. In addition, we find that borrowing firms with higher levels of CSR disclosure tend to issue bonds at more favorable terms (i.e., lower bond yield spread and longer maturity). Together, our findings are consistent with the notion that nonfinancial CSR disclosure plays an incrementally important role in a firm's debt placement decisions. JEL Classifications: G32; M14; M21. Data Availability: Data are available from the public sources identified in the paper.


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