Similar Search Results

The government’s role in government-owned banks

Shen, Chung-Hua; Hasan, Iftekhar; Lin, Chih-Yung - Suomen Pankki - 2013

In this study, we reinvestigate the question of whether government banks are inferior to private banks. We use cross country data from 1993 to 2007 to trace the different types of government banks. These types comprise banks that acquire distressed banks, normal banks, or no banks at all....

Persistent link: https://www.econbiz.de/10010698834

Can firms learn by observing? Evidence from cross-border M&As

Francis, Bill B.; Hasan, Iftekhar; Sun, Xian; Waisman, Maya - Suomen Pankki - 2014

In the presence of high uncertainty and limited experience, can observing the actions of other acquiring predecessors help firms make better acquisition decisions? Using a sample of cross-border M&As conducted by US acquirers in developing countries, we document a positive and significant...

Persistent link: https://www.econbiz.de/10010945113

Do corporate boards affect firm performance? New evidence from the financial crisis

Francis, Bill; Hasan, Iftekhar; Wu, Qiang - Suomen Pankki - 2012

This study uses the current financial crisis as a quasi-experiment to examine whether and to what extent corporate boards affect the performance of firms. Using cumulative stock returns over the crisis to measure of firm performance, we find that board independence, as traditionally defined,...

Persistent link: https://www.econbiz.de/10010542073

Leverage and growth: effect of stock options

Francis, Bill; Hasan, Iftekhar; Sharma, Zenu - Suomen Pankki - 2011

This paper investigates the potential effects of stock options on managers’ investment decisions and therefore on a firm’s growth or, alternatively, on its leverage-growth relationship. To structure the analysis addressing this issue, the paper utilizes a framework establishing a negative...

Persistent link: https://www.econbiz.de/10009358948

Corporate boards and bank loan contracting

Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang - Suomen Pankki - 2012

We investigate the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and nonprice loan terms (e.g., interest rates, collateral, covenants, and performance-pricing provisions) are more favorable, and syndicated loans comprise...

Persistent link: https://www.econbiz.de/10010548600

Are firm- and country-specific governance substitutes? Evidence from financial contracts in emerging markets

Francis, Bill; Hasan, Iftekhar; Song, Liang - Suomen Pankki - 2012

We investigate how borrowers’ corporate governance influences bank loan contracting terms in emerging markets and how this relation varies across countries with different country-level governance. We find that borrowers with stronger corporate governance obtain favorable contracting terms with...

Persistent link: https://www.econbiz.de/10010548603

Cross-border bank M&As and risk: evidence from the bond market

Choi, Sungho; Francis, Bill B; Hasan, Iftekhar - Suomen Pankki - 2010

The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives for bank managers...

Persistent link: https://www.econbiz.de/10008626085

Law and stock markets: evidence from an emerging market

Korkeamäki, Timo; Rainio, Elina; Takalo, Tuomas - Suomen Pankki - 2010

A sweeping and protracted reform of corporate law took place in Finland in the 1970s. The reform brought significant improvements to investor protection and, similar to the US Sarbanes-Oxley Act, tightened disclosure rules at the cost of increasing the work load in corporate reporting. We find...

Persistent link: https://www.econbiz.de/10008496954

Pre-emptive horizontal mergers: theory and evidence

Molnar, Jozsef - Suomen Pankki - 2007

less than in an alternative where the merger is undertaken by a product market rival. This paper presents a model based on … synergies, market power and competition for merger targets. Consistent with the model the empirical results obtained here show a … strong correlation between the returns of acquiring firms and close rivals around merger events. …

Persistent link: https://www.econbiz.de/10005190742

Agency Cost of Debt and Lending Market Competition: A Re-Examination

Koskela, Erkki; Stenbacka, Rune - Suomen Pankki - 2000

We address how lending market competition, measured by banks’ bargaining power, affects the agency costs of debt finance. We show that the threshold for obtaining loan finance is independent of the relative bargaining power of the financier. Moreover, intensified lending market competition...

Persistent link: https://www.econbiz.de/10005190771