Journal ArticleDOI
Further evidence on the bank lending process and the capital-market response to bank loan agreements
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In this article, the authors investigated the hypothesis that bank loans convey information to the capital market regarding the value of the borrowing firm and distinguished between new bank loans and loan renewals.About:
This article is published in Journal of Financial Economics.The article was published on 1989-11-01. It has received 992 citations till now. The article focuses on the topics: Non-conforming loan & Cross-collateralization.read more
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Financial development and economic growth : views and agenda
Ross Levine,Ross Levine +1 more
TL;DR: The authors argued that the preponderance of theoretical reasoning and empirical evidence suggests a positive first-order relationship between financial development and economic growth, and that financial development level is a good predictor of future rates of economic growth.
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The Benefits of Lending Relationships: Evidence from Small Business Data
TL;DR: In this article, the authors empirically examined how ties between a firm and its creditors affect the availability and cost of funds to the firm and found that the primary benefit of building close ties with an institutional creditor is that the availability of financing increases.
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INSIDERS AND OUTSIDERS: The Choice between Informed and Arm's-length Debt
TL;DR: In this paper, the authors argue that while informed banks make flexible financial decisions which prevent a firm's projects from going awry, the cost of this credit is that banks have bargaining power over the firm's profits, once projects have begun.
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The Effect of Credit Market Competition on Lending Relationships
TL;DR: The authors showed that the extent of competition in credit markets is important in determining the value of lending relationships and that creditors are more likely to finance credit constrained firms when credit markets are concentrated because it is easier for these creditors to internalize the benefits of assisting the firms.
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The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle
TL;DR: In this paper, the economics of small business finance in private equity and debt markets are examined. But the authors focus on the macroeconomic environment and do not consider the impact of the macro economic environment on small business.
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Financial Intermediation and Delegated Monitoring
TL;DR: In this paper, the authors developed a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders, and presented a characterization of the costs of providing incentives for delegated monitoring by a financial intermediary.
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Using daily stock returns: The case of event studies
TL;DR: In this paper, the authors examine properties of daily stock returns and how the particular characteristics of these data affect event study methodologies and show that recognition of autocorrelation in daily excess returns and changes in their variance conditional on an event can sometimes be advantageous.
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What's different about banks?☆
TL;DR: The reserve tax on CD's is borne by bank borrowers as discussed by the authors, and it is assumed that bank borrowers are willing to pay higher interest rates than those on other securities of equivalent risk.
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Some evidence on the uniqueness of bank loans
TL;DR: In this article, the authors present evidence that banks provide some special service with their lending activity that is not available from other lenders, and they find evidence that bank borrowers, not CD holders, bear the cost of reserve requirements on CDs.
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Equity issues and offering dilution
Paul Asquith,David W. Mullins +1 more
TL;DR: In this article, the authors investigated the effect on stock prices of seasoned equity offerings and found that announcement day price reduction is significantly and negatively related to the size of the equity offering.