Several types of evidence are presented to demonstrate that firms are
concerned with who provides their financing, not just with the debt/equity
distinction. Aggregate and industry trends and patterns in the incremental
sources of financial capital are documented, and a large sample of incremental
corporate financial decisions is econometrically analyzed. There are large and
persistent differences in the patterns of internal and external financing,
both in the aggregate and across industries. Individual firms are shown to
have distinct preferences for different providers of funds. Several indicators
of potentially costly hidden information problems are important and significant
determinants of choices between private and publicly-marketed sources, even
after controlling for the type of security (debt or equity).
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.