<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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).</p></abstract>

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).

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

Central European Economic Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

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

Published Online: Jul 08, 2020

Page range: 262 - 285

DOI: https://doi.org/10.2478/ceej-2019-0017

Keywords
corporate bonds, bank loans, disclosure, cash flow variability, investment risk

© 2019 Anna Białek-Jaworska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Jul 08, 2020

Page range: 262 - 285

DOI: https://doi.org/10.2478/ceej-2019-0017

Keywordscorporate bonds, bank loans, disclosure, cash flow variability, investment risk

© 2019 Anna Białek-Jaworska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
corporate bonds, bank loans, disclosure, cash flow variability, investment risk