In this paper we analyze a firm's optimal choice of the number of creditors and the extent of
information disclosed to them. By dealing with many banks and disclosing essential confidential
information, a firm can keep its cost of credit low. This, however, is associated with a relatively
high probability that valuable information leaks to competitors, leading to lower expected net
returns from product market operations. Taking these costs into account, a highly rated firm
tends to deal with many banks and discloses little private information. A firm discloses private
information if its credit rating and the costs of information leakage are low.
Dieser Eintrag ist Teil der Universitätsbibliographie.
Search Authors in