Beschreibung:
Due to perceptions of lower risk, larger and more liquid Australian firms are more likely to be funded by the relatively small corporate bond market. However, contrary to other markets, short-term debt has no effect on debt choice. Syndicated loans fund riskier, more leveraged, higher growth and more profitable firms. This willingness of the bank syndicated debt market to invest in higher growth issues compared to prior studies reflects the information advantages Australian banks possess in a concentrated debt market. Direct bank monitoring expertise via syndicated loans becomes more evident across the higher risk and growth firms after the GFC