ScholarWorks@숙명여자대학교

초록

BIR has gotten attention because BIR contains more frequently updated information on credit risk than AR does. We focus on the informational role of variability and/or volatility of BIR on financing decisions as for Kisgen (2006, 2009). Our empirical results show that downward variability of BIR lessens debt and total capital financing although upward variability of BIR results in increase of total capital raising, which supports CR-CS hypothesis. In case of downward variability and high volatility of BIR, increased information asymmetry induces increase of debt financing in that firms are more sensitive to future down-grade of credit rating, which supports market exploitation hypothesis

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