TY  - JOUR
AU  - MacKie-Mason,Jeffrey K.
TI  - Do Firms Care Who Provides their Financing?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3039
PY  - 1989
Y2  - July 1989
UR  - http://www.nber.org/papers/w3039
L1  - http://www.nber.org/papers/w3039.pdf
N1  - Author contact info:
Jeffrey K. MacKie-Mason
Department of Economics
462 Lorch Hall
Ann Arbor, MI  48109-1220
Tel: 47/228-55127 or 47/2285-5035 fax
E-Mail: jmm@umich.edu
M1  - published as Jeffrey K. MacKie-Mason. "Do Firms Care Who Provides Their Financing?," in R. Glenn Hubbard, editor, "Asymmetric Information, Corporate Finance, and Investment" University of Chicago Press, 1990 (1990)

AB  - Several types of evidence are presented to demonstrate that firms are concerned with who provides their financing, not just with the debt/equity distinction. Aggregate and industry trends and patterns in the incremental sources of financial capital are documented, and a large sample of incremental corporate financial decisions is econometrically analyzed. There are large and persistent differences in the patterns of internal and external financing, both in the aggregate and across industries. Individual firms are shown to have distinct preferences for different providers of funds. Several indicators of potentially costly hidden information problems are important and significant determinants of choices between private and publicly-marketed sources, even after controlling for the type of security (debt or equity).
ER  -