Corporate bonds or bank loans? The choice of funding sources and information disclosure of Polish listed companies

Abstracts

EN

The paper aims to find what determines the choice of companies listed on the Warsaw Stock Exchange (WSE) between public debt (corporate bonds) and private debt (bank loans). For this purpose, we estimate logistic regression models and panel models of corporate borrowing determinants to compare the impact of enterprise characteristics on financing with the use of corporate bonds or bank loans. In this study, we are interested in explanatory variables that explain the role of transparency measured by the level of information disclosure; and a risk proxy of the variability of operational cash flows and investment risk (retrieved from generalised auto-regressive conditional heteroscedasticity [GARCH] models estimated on companies’ stocks [shares] trading on the WSE).

Keywords

EN

corporate bonds; bank loans; disclosure; cash flow variability; investment risk

• Publisher: Uniwersytet Warszawski. Wydawnictwo Naukowe Wydziału Zarządzania
• Journal: Central European Economic Journal
• Year: 2019
• Volume: 6
• Issue: 53

Dates

published

2020-07-08

Contributors

other

Anna Białek-Jaworska

• Faculty of Economic Sciences University of Warsaw Warsaw, Poland

other

Tomasz Krawczyk

• Enterprise Europe Network

Identifiers

DOI

10.2478/ceej-2019-0017