Risk aversion and debt maturity structure

We study the relationship of risk aversion and debt maturity structure. In a model in which adverse selection in financial markets creates a role for the use of short-term debt, we allow the possibility of borrowers being risk-averse. This creates a trade-off between reduced expected financing costs...

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Detalles Bibliográficos
Autores principales: Blanca Cecilia García, Jorge Fernández Ruiz
Formato: Artículo científico
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2003
Materias:
Economía y Finanzas
risk aversion
debt maturity structure
adverse selection
Acceso en línea:http://www.redalyc.org/articulo.oa?id=32312204
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32312204oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-32312204oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
risk aversion
debt maturity structure
adverse selection
spellingShingle Economía y Finanzas
risk aversion
debt maturity structure
adverse selection
Blanca Cecilia García
Jorge Fernández Ruiz
Risk aversion and debt maturity structure
topic_facet Economía y Finanzas
risk aversion
debt maturity structure
adverse selection
description We study the relationship of risk aversion and debt maturity structure. In a model in which adverse selection in financial markets creates a role for the use of short-term debt, we allow the possibility of borrowers being risk-averse. This creates a trade-off between reduced expected financing costs and higher risk and allows for the study of the effect of risk aversion on optimal maturity structure. We prove that, as risk aversion increases, so does the percentage of debt that is long-term.
format Artículo científico
Artículo científico
author Blanca Cecilia García
Jorge Fernández Ruiz
author_facet Blanca Cecilia García
Jorge Fernández Ruiz
author_sort Blanca Cecilia García
title Risk aversion and debt maturity structure
title_short Risk aversion and debt maturity structure
title_full Risk aversion and debt maturity structure
title_fullStr Risk aversion and debt maturity structure
title_full_unstemmed Risk aversion and debt maturity structure
title_sort risk aversion and debt maturity structure
publisher Centro de Investigación y Docencia Económicas, A.C.
publishDate 2003
url http://www.redalyc.org/articulo.oa?id=32312204
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32312204oai
work_keys_str_mv AT blancaceciliagarcia riskaversionanddebtmaturitystructure
AT jorgefernandezruiz riskaversionanddebtmaturitystructure
bdutipo_str Repositorios
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