 Information disclosure strategies and bank interest rates pricing decisionsDongwei He, Zhen Zhang and Qiang Wang The Quarterly Review of Economics and Finance, 2024, vol. 97, issue C Abstract: A joint decision-making model for debt financing and operations is constructed in this study. The proposed model is designed so that enterprises can actively adjust the transparency of private information while considering the risks of corporate bankruptcy, bank premium behavior, and possible damage to the product market. We systematically analyzed the mechanisms of bank interest rate pricing, corporate information transparency, and corresponding stocking strategies. We examined the impact of the companies’ inventories and transparency of different types of information on bank interest rates, which revealed financing and management-related decision-making issues based on the bank’s interest rate response function. Various levels of information transparency are appropriate for companies in the context of debt financing. We discuss the impact of changes in exogenous parameters in the product and financial markets on the basis of global equilibrium, as well as corporate characteristics affecting optimal decision-making. Keywords: Bankruptcy risk; Bank interest rate; Enterprise stocking; Information transparency (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:97:y:2024:i:c:s1062976924000942 DOI: 10.1016/j.qref.2024.101888 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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