Asset Redeployability and the Choice Between Bank Debt and Public Debt

2018 ◽  
Author(s):  
Haosi Chen ◽  
David A. Maslar ◽  
Matthew Serfling
Keyword(s):  
Public Debt ◽  
Bank Debt

Is Bangladesh Rolling towards Debt Stress? An Exploration of Debt Sustainability in the Context of Recent External Financial Flows

2018 ◽  
Vol 7 (2) ◽  
pp. 137-173
Author(s):  
Debapriya Bhattacharya ◽  
Zeeshan Ashraf
Keyword(s):  
Public Debt ◽  
Jel Classification ◽  
Bank Debt ◽  
Financial Flows ◽  
Economic Growth Rate ◽  
Debt Sustainability ◽  
Alternative Future ◽  
Debt Stress ◽  
Sustainability Of Public Debt ◽  
Sustainability Framework

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

Dividend Smoothing and Debt Ratings

2006 ◽  
Vol 41 (2) ◽  
pp. 439-453 ◽  
Author(s):  
Varouj A. Aivazian ◽  
Laurence Booth ◽  
Sean Cleary
Keyword(s):  
Public Debt ◽  
Dividend Policy ◽  
Bond Markets ◽  
Bank Debt ◽  
Private Bank ◽  
Bond Ratings ◽  
Dividend Payment ◽  
Dividend Smoothing ◽  
Flow Through

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.

Corporate Social Responsibility (CSR) Disclosure and the Choice between Bank Debt and Public Debt

2019 ◽  
Vol 34 (1) ◽  
pp. 151-173 ◽  
Author(s):  
Weiqiang Tan ◽  
Albert Tsang ◽  
Wenming Wang ◽  
Wenlan Zhang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Public Debt ◽  
Reporting Quality ◽  
Data Availability ◽  
Bank Debt ◽  
Private Debt ◽  
Csr Disclosure ◽  
Corporate Social

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.

scholarly journals The The Shift in Firms’ Reliance on Debt Sources

2019 ◽  
Vol 8 ◽  
pp. 31-35
Author(s):  
Tu Cam Ho
Keyword(s):  
Capital Market ◽  
Public Debt ◽  
Structural Changes ◽  
Common Source ◽  
Bank Debt ◽  
Data Set ◽  
Private Placement ◽  
Financial Firms ◽  
Unique Data ◽  
Over Time

Structural changes in capital market and information innovations have altered characteristics of debt sources, make them more or less favourable to firms. This could possibly lead to a shift in firms' reliance on debt sources. Using a unique data set of debt mix of 1,100 U.S. non-financial firms, I conduct data analysis to reveal changes in firms' preference for different debt sources over a decade from 2004 to 2014. I find that bank debt remains the most common source of borrowing, followed by public debt and finally private placement debt. In addition, over time, firms have become more reliant on bank and public debt while less reliant on private placement debt. This pattern is consistent across different industries.  

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