In the HSLR case (Panel B, second row), the degree of Information Asymmetry does not appear to affect the use of callable bonds.
Model 2 further divides the HS group into HSHR and HSLR subgroups.
The coefficients on Information Asymmetry and HSLR are significantly positive.
(18) In addition, a significantly higher percentage of Rule 144A issues are HSLR issues.
In the previous section, we find that callable issues tend to fall in the high sales growth, low MB Ratio (HSLR) group.
High sales growth, low A dummy variable equal to one if the MB ratio (HSLR) issuing firm has above-median historical sales growth but below-median MB Ratio, and zero otherwise.
(11) Findings in Panel B support our conjecture that HSLR issuers have more severe information asymmetry problems.