The Choice of Debt Source by UK Firms

Andrew Marshall; Laura McCann; Patrick McColgan

doi:10.1111/jbfa.12194

The Choice of Debt Source by UK Firms

Andrew Marshall, Laura McCann^* (Corresponding Author), Patrick McColgan

^*Corresponding author for this work

Accountancy & Finance, Accountancy

University of Strathclyde

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

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Abstract

We examine the choice of borrowing source for a sample of non-financial firms on the FTSE-350 index of the London Stock Exchange from 2000-2008. Our research distinguishes between public debt, bank debt, and non-bank private debt and between bilateral bank loans and syndicated bank loans. Our research emphasises the importance of firm size and collateral in determining the borrowing source. Large firms and those with a greater proportion of fixed assets are more easily able to borrow in public debt markets. Syndicated loans appear to be a substitute for public debt. Firms with access to public debt markets routinely choose to borrow through syndicated loans with shorter maturity and close monitoring.

Original language	English
Pages (from-to)	729-764
Number of pages	36
Journal	Journal of Business Finance and Accounting
Volume	43
Issue number	5-6
Early online date	May 2016
DOIs	https://doi.org/10.1111/jbfa.12194
Publication status	Published - May 2016

Keywords

debt policy
public debt
bilateral loans
syndicated loans
non-bank private debt

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10.1111/jbfa.12194Licence: Unspecified

The choice of debt source for UK companies
This is the peer reviewed version of the following article:Marshall, A., Mccann, L. and Mccolgan, P. (2016), The Choice of Debt Source by UK Firms. Journal of Business Finance & Accounting, 43: 729–764., which has been published in final form at doi: 10.1111/jbfa.12194. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Accepted author manuscript, 567 KBLicence: Unspecified

Laura McCann
- Business School, Accountancy & Finance, Finance - Senior Lecturer
Person: Academic

Cite this

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The Choice of Debt Source by UK Firms

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Laura McCann

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