The effect of debt choice on firm value

4Citations
Citations of this article
57Readers
Mendeley users who have this article in their library.

Abstract

This study aims to verify the effects of different methods of debt financing on firm value. The most common methods used by firms to finance its operations are directly issuing corporate bonds in the capital market and borrowing through financial institutions such as banks. From the accounting perspective, there is no difference between corporate bonds and bank loans. However, from the economic perspective, corporate bonds and bank loans are different in terms of their characteristics. This study conducts with the assumption that the attributes of the type of debt selected determine its impact on firm value. The results indicate that firms that use corporate bonds more frequently than bank loans have a higher value.

References Powered by Scopus

Earnings, Book Values, and Dividends in Equity Valuation

2743Citations
N/AReaders
Get full text

Accounting quality and debt contracting

711Citations
N/AReaders
Get full text

Proprietary information, financial intermediation, and research incentives

239Citations
N/AReaders
Get full text

Cited by Powered by Scopus

The effect of investor sentiment on market reactions to financial earnings restatements: Lessons from the United States

18Citations
N/AReaders
Get full text

Does debt heterogeneity impact firm value? Evidence from an emerging context

6Citations
N/AReaders
Get full text

FACTORS THAT CAN SUPPORT AND INFLUENCE THE FINANCIAL PERFORMANCE AND VALUE OF GO-PUBLIC COMPANIES IN INDONESIA

0Citations
N/AReaders
Get full text

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Cite

CITATION STYLE

APA

Hong, S. (2017). The effect of debt choice on firm value. Journal of Applied Business Research, 33(1), 135–140. https://doi.org/10.19030/jabr.v33i1.9874

Readers over time

‘17‘18‘19‘20‘21‘22‘23‘24‘250481216

Readers' Seniority

Tooltip

PhD / Post grad / Masters / Doc 19

66%

Lecturer / Post doc 7

24%

Researcher 2

7%

Professor / Associate Prof. 1

3%

Readers' Discipline

Tooltip

Business, Management and Accounting 11

38%

Economics, Econometrics and Finance 8

28%

Engineering 7

24%

Social Sciences 3

10%

Save time finding and organizing research with Mendeley

Sign up for free
0