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

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  • Białek-Jaworska Anna

    (Faculty of Economic Sciences, University of Warsaw, Warsaw, Poland)

  • Krawczyk Tomasz

    (Enterprise Europe Network)

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).

Suggested Citation

  • Białek-Jaworska Anna & Krawczyk Tomasz, 2019. "Corporate bonds or bank loans? The choice of funding sources and information disclosure of Polish listed companies," Central European Economic Journal, Sciendo, vol. 6(53), pages 262-285, January.
    • Handle: RePEc:vrs:ceuecj:v:53:y:2019:i:6:p:262-285:n:16
    DOI: 10.2478/ceej-2019-0017
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    More about this item

    Keywords

    corporate bonds; bank loans; disclosure; cash flow variability; investment risk;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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