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Cited by 313

The DOI matches its Crossref record; 54 of the 54 references it cites were found in a registry or an index.

The Cost of Debt

Van BINSBERGEN, JULES H., GRAHAM, JOHN R., YANG, JIE·2010·The Journal of Finance
DOI 10.1111/j.1540-6261.2010.01611.x
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Abstract

We use exogenous variation in tax benefit functions to estimate firm‐specific cost of debt functions that are conditional on company characteristics such as collateral, size, and book‐to‐market. By integrating the area between the benefit and cost functions, we estimate that the equilibrium net benefit of debt is 3.5% of asset value, resulting from an estimated gross benefit (cost) of debt equal to 10.4% (6.9%) of asset value. We find that the cost of being overlevered is asymmetrically higher than the cost of being underlevered and that expected default costs constitute only half of the total ex ante costs of debt.

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Metadata

Authors
Van BINSBERGEN, J. H., GRAHAM, J. R., & YANG, J.
Venue
The Journal of Finance
Publisher
Wiley
Published
2010-11-09
Volume
65
Issue
6
Pages
2089-2136
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.2010.01611.x
OpenAlex
W2320723619
Cited by
313
References
54
FWCI
67.53
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: The Cost of Debt. https://app.cochat.ai/papers/10.1111/j.1540-6261.2010.01611.x
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Van BINSBERGEN, J. H., GRAHAM, J. R., & YANG, J. (2010). The Cost of Debt. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2010.01611.x

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.