Using responses of credit default swap indexes to ECB monetary policy announcements, we isolate a novel credit policy component of monetary policy surprises. We examine how such unconventional monetary policy surprises affect investor perceptions of credit risk and the functioning of primary...

We investigate the impact of bank disclosure regulations on local business activities by exploiting the 2005 Community Reinvestment Act (CRA) reform, which exempted a group of banks from federal mandatory disclosure requirements for geographic loan distribution. We find that low and moderate...

We study how trust held by citizens of a lender country towards citizens of a borrower country (“lenders’ generalized trust”) affects pricing and non-pricing terms of international syndicated loans. We find that generalized trust of a lead bank in the syndicated loans reduces loan spreads...

In 2012, China implemented a green credit policy (GCP) that restricts bank credits to heavily polluting firms. This paper examines how the GCP affects the cash holdings of Chinese listed firms. Using a difference-in-differences research design, we find that GCP-affected firms increase their cash...