Abstract

FERNANDEZ RUIZ, Jorge. La debilidad financiera y el comportamiento depredador en la financiación de la deuda. El trimestre econ [online]. 2005, vol.72, n.287, pp.497-521.  Epub Dec 05, 2022. ISSN 2448-718X.  https://doi.org/10.20430/ete.v72i287.569.

A widely known theory of predation holds that firms with ample financial resources may prey on their financially weak rivals to drive them out of the market. Yet, rational weak firms should take this predatory threat into account when designing its financial liabilities. In this paper, we examine the optimal financial response by a debt-financed firm to the threat of predation when there is adverse selection in financial markets. Specifically, we focus on how the debt maturity structure optimally changes as a reaction to this threat. We show that the optimal response may or may not be to deter predation. If it is optimal to deter predation, this is achieved by a lengthening of the debt maturity structure: some short-term debt is replaced with long-term debt. If it is optimal to acquiesce to predation, pure short-term debt is chosen.

Keywords : depredación; estructura de vencimientos de deuda; cartera grande.