Creditor Relations

Research period

Since October 2010 

Project outline

Within the scope of research, the influence of communication on the conditions for debt financing of non-financial companies will be analysed. For evaluation purposes, both literature analyses as well as empirical methods are used. Our aim is to define the significance and effectiveness of a creditor-oriented disclosure policy under the conditions of the new institutional economics.

The project focuses on two major topics. On one hand the disclosure requirements within the bilateral credit relations between companies and banks are defined. For this purpose, information demands will be derived and summarised in an overall model that is available for (potential) contract parties within the intern rating process of lending banks.

The second focus of examination is set on the creditor communication of bond issuing companies. At the moment, nearly 200 German companies participate at the bond market. Between 2000 and 2011 the outstanding volume of corporate fixed-interest securities has grown by 18 times to 250.8 bn EUR. The market’s growing relevance entails that relevant market participants have already turned fixed-income securities into one of the key issues of their investor relations policy.

An empirical description of German issuers’ communication efforts will be drawn and their effects on financing capabilities and conditions will be evaluated.

Project management

Prof. Dr. Heinrich Degenhart

Steve Janner, M.A.