EconPapers    
Economics at your fingertips  
 

Determinants of corporate debt structure in a privately dominated debt market: a study of the Spanish capital market

Kalu Ojah () and Justo Manrique ()

Applied Financial Economics, 2005, vol. 15, issue 7, 455-468

Abstract: To date, corporate debt structure research has focused largely on national debt markets characterized by both public and private debts supplies. However, given that most national debt markets are characterized by the absence of public debt supply, the representative debt market of Spain is used to extend the research on corporate debt structure. A double-hurdle test approach reveals that the likelihood of using bank debt is positively related to firm size and information availability but negatively related to firm credit worthiness, while the likelihood of using non-bank private debt is positively related to firm size, growth potential, relative firm size and degree of leverage. Further, it is found that the amount of bank debt firms hold is positively related to firm size, growth potential, information asymmetry, and age but negatively related to information availability. The amount of non-bank private debt is positively related to firm size but negatively to growth potential and age. Moreover, it is found that though some roles of private debt providers are similar in the two distinct national debt markets, some roles of public debt suppliers are supplanted by non-bank private debt suppliers in a debt market bereft of public debt supply.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/0960310042000319228 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:15:y:2005:i:7:p:455-468

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/0960310042000319228

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-03-28
Handle: RePEc:taf:apfiec:v:15:y:2005:i:7:p:455-468