Institutions and Corporate Reputation: Evidence from Public Debt Markets

Predation and reputation acquisition in debt markets⋆

This paper presents a model of predation based on reputational differences between the entrant and an incumbent. While the incumbent has an established reputation in the debt market, the entrants’s quality is not yet known in the debt market. We show that the incumbent may have incentives to prey in order to interfere with the “reputation acquisition” of the entrant.

Corporate governance and the cost of public debt financing: Evidence from Japan

Tanaka, Takanori—Corporate governance and the cost of public debt financing: Evidence from Japan This paper explores the relationship between corporate governance mechanisms and the cost of public debt financing in Japan. Using a sample of corporate bonds newly issued in Japan during the period 2005–2008, I find that CEO ownership is associated with higher yield spreads after controlling for ot...

Institutions, Financial Markets, and Firms' Choice of Debt Maturity

The Corporate Choice between Public Debt, Bank Loans, Traditional Private Debt Placements, and 144A Debt Issues

The main purpose of this study is to examine the determinants of the corporate choice between different forms of debt financing. By analyzing the most comprehensive sample of U.S. corporate debt issues to date, I find that firms that issue 144A debt have significantly lower credit quality and higher information asymmetry than firms that issue traditional non-bank private debt. Further, the stud...

Debt, Debt Structure and Corporate Performance after Unsuccessful Takeovers: Evidence from Target Firms that Remain Independent

_____________________________________________________________________________ Abstract: Significant increases in the level of target leverage have been previously documented, following unsuccessful takeover attempts. Increased leverage may signal managerial commitment to improved performance, suggesting that corporate performance and leverage should be positively related. If, however, the incre...