The Choice of Debt Source by UK Firms

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

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)
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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 languageEnglish
Pages (from-to)729-764
Number of pages36
JournalJournal of Business Finance and Accounting
Issue number5-6
Early online dateMay 2016
Publication statusPublished - May 2016


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


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