The relevance of bank lending channel for the transmission process of monetary policy in Malaysia is investigated using the autoregressive-distributed lag (ARDL) model. The newly developed bounds test (Pesaran, et al. 2001) is employed to determine the specification of this model. Deposits tend...

The usefulness of audit report and the effectiveness of a qualified audit opinion in communicating information about the outcome of audit engagement represent an ongoing debate in the auditing profession. Our research contributes to this important debate by providing experimental evidence...

Financial crises are associated with reduced volumes and extreme levels of rates for term inter-bank transactions, such as in one-month and three-month LIBOR markets. We provide an explanation of such stress in term lending by modelling leveraged banks’ precautionary demand for liquidity. When...

This paper presents empirical evidence from a representative sample of Tunisian firms on the importance of loan officers in the production of 'soft information' by opposition of 'hard' information, testing whether firm borrowers have a relationship with their bank or with their loan officer. To...

The present paper reviews origin, development and growth of the micro credit programme in India. The National Bank for Agriculture and Rural Development in India launched its pilot phase of the Self Help Group Bank Linkage programme in 1992. Self Help Groups have been recognised by the policy...

Using annual data from 1995 to 2009, I analyze the impact of banks’ financial fragility on the costs of U.S. corporate bank loans. Diamond and Rajan (2001) hypothesize that financially fragile banks are able to raise funds at a lower cost and competition among banks result in some of these...

This paper empirically shows that the cost of bank debt is systematically higher for firms that operate in competitive product markets. Using various proxies for product market competition, and reductions of import tariff rates to capture exogenous changes to a firm's competitive environment, I...

Although firm-initiated clawbacks reduce accounting manipulation, they also induce managers to engage in suboptimal activities (e.g., reduce research and development (R&D) expenses) to achieve earnings targets. To assess the effectiveness of clawback provisions, we examine their impact from...