Fixed versus variable rate financing: The influence of borrower, lender, and market characteristics

Lawrence G. Goldberg; Andrea J. Heuson

doi:10.1007/BF01046117

Fixed versus variable rate financing: The influence of borrower, lender, and market characteristics

Lawrence G. Goldberg, Andrea J. Heuson

Finance

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.

Original language	English (US)
Pages (from-to)	49-60
Number of pages	12
Journal	Journal of Financial Services Research
Volume	6
Issue number	1
DOIs	https://doi.org/10.1007/BF01046117
State	Published - May 1 1992

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

Access to Document

10.1007/BF01046117

Fingerprint Dive into the research topics of 'Fixed versus variable rate financing: The influence of borrower, lender, and market characteristics'. Together they form a unique fingerprint.

Cite this

@article{6ab546bc643941efa5e7f07f33839ec4,

title = "Fixed versus variable rate financing: The influence of borrower, lender, and market characteristics",

abstract = "Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.",

author = "Goldberg, {Lawrence G.} and Heuson, {Andrea J.}",

year = "1992",

month = may,

day = "1",

doi = "10.1007/BF01046117",

language = "English (US)",

volume = "6",

pages = "49--60",

journal = "Journal of Financial Services Research",

issn = "0920-8550",

publisher = "Springer Netherlands",

number = "1",

}

TY - JOUR

T1 - Fixed versus variable rate financing

T2 - The influence of borrower, lender, and market characteristics

AU - Goldberg, Lawrence G.

AU - Heuson, Andrea J.

PY - 1992/5/1

Y1 - 1992/5/1

N2 - Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.

AB - Previous research has analyzed the problem faced by borrowers who must choose between fixed rate and variable rate loans when each loan carries different cost and risk characteristics and the borrowers face various income and employment prospects. In addition, the existing literature contains theoretical and empirical studies of how lenders react when given the ability to offer both fixed and variable rate financing. This article unifies the two strands of research to develop and test a model of the equilibrium proportion of variable rate lending. Results indicate that factors related to borrower, lender, and market characteristics are significant determinants of the equilibrium proportion of variable rate credit originated.

UR - http://www.scopus.com/inward/record.url?scp=0042148916&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0042148916&partnerID=8YFLogxK

U2 - 10.1007/BF01046117

DO - 10.1007/BF01046117

M3 - Article

AN - SCOPUS:0042148916

VL - 6

SP - 49

EP - 60

JO - Journal of Financial Services Research

JF - Journal of Financial Services Research

SN - 0920-8550

IS - 1

ER -

Fixed versus variable rate financing: The influence of borrower, lender, and market characteristics

Abstract

ASJC Scopus subject areas

Access to Document

Other files and links

Cite this