Firm Size as Determinant of the Non-linear Relationship Between Bank Debt and Growth Opportunities: The Case of Chilean Public Firms
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Date
2014-09-17Estado
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See summary in English We analyze the extent to which firm size determines the relationship between growth opportunities and bank debt in the Chilean corporate sector. Using generalized method of moments (GMM) system estimator techniques in an unbalanced panel data of quoted firms, we provide evidence of a U-shaped relationship between growth opportunities and bank debt, which has a different behavior depending on the firm's size. Smaller firms seek private debt sooner than larger firms do when growth opportunities increase. This finding is supported by the institutional characteristics of the Chilean financial system, the higher confidence of small firms in bank debt, and the bank-based orientation of the Chilean financial markets. [ABSTRACT FROM AUTHOR]
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Firm Size as Determinant of the Non-linear Relationship Between Bank Debt and Growth Opportunities: The Case of Chilean Public Firms
Tipo de Actividad
Artículos en revistasISSN
1540-496XPalabras Clave
See keywords in Englishbank debt Chilean public firms firm size growth opportunities