Information Asymmetry and the Sinking Fund Provision
研究偿债基金条款的信号作用，发现信息不对称下偿债基金摊销率能作为企业质量的可靠信号，高质量企业选择更高摊销率，实证支持该信号假说。
This paper examines the signalling implications of sinking funds and shows that under information asymmetry the sinking fund amortization rate provides a credible signal for the quality of the firm. In a separating equilibrium, better quality firms choose higher sinking fund amortization rates in their bond issues. A latent index model is proposed for testing the hypothesis of sinking fund signalling. Empirical evidence indicates that the sinking fund amortization rate signals the credit quality of the firm.