Open AccessPosted Content
Some evidence on the uniqueness of bank loans
TLDR
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.Abstract:
This paper presents evidence that banks provide some special service with their lending activity that is not available from other lenders. I find evidence that bank borrowers, not CD holders, bear the cost of reserve requirements on CDs. In addition, I find a positive stock price response to the announcement of new bank credit agreements that is larger than the stock price response associated with announcements of private placements or public straight debt offerings. Finally, I find significantly negative returns for announcements of private placements and straight debt issues used to repay bank loans.read more
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Book
Investment in capital markets
TL;DR: In this paper, the authors discuss the pros and cons of the financial capital investment in the capital markets, discussing the sophisticated investment concepts and techniques in the simple understandable readable general format language.
Posted Content
Banks and the Finnish credit cycle 1986-1995
TL;DR: In this paper, the role of deposit banks in the makings of the Finnish credit cycle of 1986-1995 is investigated and it is shown that banks' credit supply had a positive effect on credit growth in the boom period and a negative effect in the early 1990s.
Determinants of Bank Debt in a Continental Financial System. Evidence from Spanish Companies
Pablo de Andrés Alonso,Félix Javier López Iturriaga,Juan Antonio Rodríguez Sanz,Eleuterio Vallelado González +3 more
TL;DR: In this paper, the authors test hypotheses about the structure of corporate debt ownership and the use of bank debt by firms in a civil-law country, Spain, focusing on bank debt effects in the presence of information asymmetries and agency costs, and on efficient versus inefficient firm liquidation.
Dissertation
L'apprentissage organisationnel dans les acquisitions
TL;DR: In this paper, the authors investigate l'apprentissage organisationnel dans les acquisitions d'entreprises and propose a methodologie de recherche fondee based on an approche post positiviste (qualitative and quantitative).
Is the Use of Bank Debt as a Governance Mechanism Conditioned by the Financial System? The Case of Chile and Spain
TL;DR: The authors found that firms use bank debt to finance their growth opportunities when the country's banking system contributes to solving agency and asymmetric information problems and avoiding information monopoly costs, and that market imperfections such as information asymmetry or agency costs can have a diverse influence on firms’ bank debt decisions.
References
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Journal ArticleDOI
On the pricing of corporate debt: the risk structure of interest rates
TL;DR: In this article, the American Finance Association Meeting, New York, December 1973, presented an abstract of a paper entitled "The Future of Finance: A Review of the State of the Art".
Journal ArticleDOI
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.
ReportDOI
Financial Dependence and Growth
Raghuram G. Rajan,Raghuram G. Rajan,Raghuram G. Rajan,Luigi Zingales,Luigi Zingales,Luigi Zingales +5 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
BookDOI
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.
Journal ArticleDOI
Informational asymmetries, financial structure, and financial intermediation
TL;DR: This paper argued that the average quality is likely to be low, with the consequence that even projects which are known (by the entrepreneur) to merit financing cannot be undertaken because of the high cost of capital resulting from low average project quality.