Does debt diversification impact firm value? Evidence from India

被引：10

作者：

Jadiyappa, Nemiraja ^{[1
]}

Hickman, L. Emily ^{[2
]}

Jyothi, Pavana ^{[3
]}

Vunyale, Narender ^{[4
]}

Sireesha, Bhanu ^{[3
]}

机构：

[1] Indian Inst Management, Raipur 493661, Madhya Pradesh, India

[2] Calif Polytech State Univ San Luis Obispo, Orfalea Coll Business, San Luis Obispo, CA 93407 USA

[3] IBS Hyderabad, Hyderabad, India

[4] Narsee Monjee Inst Management Studies, Hyderabad Campus, Hyderabad, India

来源：

INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2020年 / 67卷

关键词：

Debt diversification; Firm value; Agency costs; Corporate governance; Group-affiliated firms; CAPITAL STRUCTURE; MATURITY STRUCTURE; AGENCY COSTS; OWNERSHIP; DETERMINANTS;

D O I：

10.1016/j.iref.2020.02.002

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Corporate debt diversification (firms simultaneously utilizing multiple distinct debt sources) is a global phenomenon. However, how such financing affects firm value has not yet been examined. Using Indian firms, we investigate debt diversification's impact on monitoring effectiveness, agency costs, and financial constraints - which can all affect market value. Results reveal a negative impact of debt diversification on firm value, particularly among group-affiliated firms. This negative impact is attributed to free riding among lenders: evidence suggests that increased agency costs resulting from inferior monitoring contributes to worse firm accounting performance. Further, debt diversification does not appear to reduce financial constraints.

引用

页码：362 / 377

页数：16

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