The choice of debt source for UK firms

Marshall, Andrew and McCann, Laura and Mccolgan, Patrick (2016) The choice of debt source for UK firms. Journal of Business Finance and Accounting, 43 (5-6). 729–764. ISSN 0306-686X (

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We examine the choice of borrowing source for a sample of non-financial firms on the FTSE-350 index of the London Stock Exchange from 2000-2008. Our research distinguishes between public debt, bank debt, and non-bank private debt and between bilateral bank loans and syndicated bank loans. Our research emphasises the importance of firm size and collateral in determining the borrowing source. Large firms and those with a greater proportion of fixed assets are more easily able to borrow in public debt markets. Syndicated loans appear to be a substitute for public debt. Firms with access to public debt markets routinely choose to borrow through syndicated loans with shorter maturity and close monitoring.


Marshall, Andrew ORCID logoORCID:, McCann, Laura and Mccolgan, Patrick ORCID logoORCID:;