Debt maturity, risk, and asymmetric information
By: Allen N. Berger ... [et al.].
Contributors: Berger, Allen N.
Series: Finance and economics discussion series ;; 2004-60; Finance and economics discussion series (Online) ;; 2004-60.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "We test the implications of Flannery's (1986) and Diamond's (1991) models concerning the effects of risk and asymmetric information in determining debt maturity, and we examine the overall importance of informational asymmetries in debt maturity choices.  We employ data on over 6,000 commercial loans from 53 large U.S. banks.  Our results for low-risk firms are consistent with the predictions of both theoretical models, but our findings for high-risk firms conflict with the predictions of Diamond's model and with much of the empirical literature.  Our findings also suggest a strong quantitative role for asymmetric information in explaining debt maturity"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 10/21/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.