Firm Size as Determinant of the Nonlinear Relationship Between Bank Debt and Growth Opportunities: The Case of Chilean Public Firms
Author
dc.contributor.author
Jara Bertín, Mauricio
Author
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Moreno, Marta
Author
dc.contributor.author
Saona, Paolo
Admission date
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2017-03-22T16:58:22Z
Available date
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2017-03-22T16:58:22Z
Publication date
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2014
Cita de ítem
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Emerging Markets Finance and Trade, Vol. 50, No. 1, pp. 265 - 293, Enero, 2014
es_ES
Identifier
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1540496X
Identifier
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DOI: 10.2753/REE1540-496X5001S117
Identifier
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https://repositorio.uchile.cl/handle/2250/143220
Abstract
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We analyze the extent to which firm size determines the relationship between
growth opportunities and bank debt in the Chilean corporate sector. Using generalized
method of moments (GMM) system estimator techniques in an unbalanced panel data of
quoted firms, we provide evidence of a U-shaped relationship between growth opportunities
and bank debt, which has a different behavior depending on the firm’s size. Smaller firms
seek private debt sooner than larger firms do when growth opportunities increase. This
finding is supported by the institutional characteristics of the Chilean financial system,
the higher confidence of small firms in bank debt, and the bank-based orientation of the
Chilean financial markets.