... 1981), differential access of suppliers and buyers to financing (Schwartz,1974), and informational advantages and comparative costs of monitoring (Smith,1987; Mian and Smith, 1992; Biais and Gollier, ... operatingliabilities. Biais and Gollier (1997) and Petersen and Rajan (1997), for example, seesuppliers as having more information about firms than banks and the bond market,so more operating debt might ... which is added to the numerator of ROOA according to (11), is proportional to OLLEV. So if the borrowing rate is too small, ROOA would be understated by an amount positivelyrelated to OLLEV.13....