Choi, Yoon K.; Smith, Stanley D. - In: Managerial Finance 28 (2002) 12, pp. 25-43
costs (liabilities) and output (loans) price is quite high and positive since both depend heavily on interest rates. Finally …, bank loans may be subject to a high degree of irreversibility (e.g., substantial loss in defaults). The real option model ….g., interest rate risk, they decrease another type of risk, e.g., lending risk as measured by loans/assets. …