Showing 1 - 9 of 9
We investigate bank loans’ specialness with a particular focus on the recent boom and bust cycle. We perform an empirical analysis using event study methodology on a sample of 253 large loan announcements for French borrowers between January 2000 and December 2009. We find a significant and...
Persistent link: https://www.econbiz.de/10009492771
Using a large sample of bank loan renegotiations by European firms, I show that renegotiation of financial contracts matters for shareholders and can increase their wealth. I find that amendments to financial covenants and to loan amounts increase borrower’s cumulative abnormal return by 10%...
Persistent link: https://www.econbiz.de/10010607536
The aim of this paper is to empirically investigate the determinants of creditor concentration in the use of bank loans by firms in a European cross-country framework. We analyze the influence of loan and borrower characteristics but also banking market structure and legal enforcement...
Persistent link: https://www.econbiz.de/10004999725
renegotiations using a sample of 1 600 amendments to private debt contracts in Europe. The median duration between loan amendments … the dynamics of bank loan renegotiation in Europe. …
Persistent link: https://www.econbiz.de/10010738375
Reputation of financial institutions is crucial for their activity and performance. Participant banks often rely on lead bank’s reputation in making future syndicated loan participation and lending decisions. We apply ordered probit regression techniques to a sample of more than 4,600 loans to...
Persistent link: https://www.econbiz.de/10010742552
We investigate the relationship between borrower quality and the structure of the pool of banks. First, we develop a theoretical model where the size of the banking pool is a credible signal of firm quality. We argue that better borrowers seek to disclose their quality in a credible way through...
Persistent link: https://www.econbiz.de/10008615329
Social networks and reputation are believed to play important roles in mitigating informational frictions related to financial intermediation, in particular bank lending. We investigate the effect of the network and reputation of financial institutions on the certification value of bank loans...
Persistent link: https://www.econbiz.de/10011168662
We study the effect of bank loan and bond announcements on borrower’s stock price. We apply an event study methodology on a sample of companies from 17 European countries. We find that debt announcement generates a positive stock market reaction. However our main conclusion is that the...
Persistent link: https://www.econbiz.de/10011168663
We provide empirical evidence on the determinants of the number of bank lenders using a sample of more than 3000 loans to firms from 24 European countries. Our testable hypotheses are built upon different theoretical frameworks drawn from the existing literature, referring to firm...
Persistent link: https://www.econbiz.de/10005509722