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Externality of Stock Liquidity to the Cost of Borrowing

Francis, Bill - 2016

The paper investigates whether stock liquidity of firms is valued by lending banks revealing that firms with higher … liquidity in the capital market pay lower spreads for the loans they obtain. This relationship is causal as evidenced by using … the decimalization of tick size as an exogenous shock to stock liquidity in a difference-in-differences setting. Reduction …

Persistent link: https://www.econbiz.de/10012979288

Product Market Relationships and Cost of Bank Loans : Evidence from Strategic Alliances

Fang, Yiwei - 2011

This paper examines the effects of strategic alliances on non-financial firms' bank loan financing. We construct several measures to capture firms' alliance activities using the frequency of alliance activities, the prominence of the alliance partner and the relative networking position in the...

Persistent link: https://www.econbiz.de/10013127601

Product market relationships and cost of bank loans: evidence from strategic alliances

Fang, Yiwei; Francis, Bill; Hasan, Iftekhar; Wang, Haizhi - Suomen Pankki - 2011

This paper examines the effects of strategic alliances on non-financial firms’ bank loan financing. We construct several measures to capture firms’ alliance activities using the frequency of alliance activities, the prominence of the alliance partner and the relative networking position in...

Persistent link: https://www.econbiz.de/10008867449

Firms’ risk endogenous to strategic management choices

Delēs, Manthos D.; Hasan, Iftekhar; Tsionas, Efthymios G. - 2015

Persistent link: https://www.econbiz.de/10011327638

On Modelling IPO Failure Risk

Colak, Gonul; Fu, Mengchuan; Hasan, Iftekhar - 2022

This paper offers a novel framework, combining firm operational risk, IPO pricing risk, and market risk, to model IPO failure risk. By analyzing nearly a thousand variables, we observe that prior IPO failure risk models have suffered from a major missing-variable problem. Evidence reveals...

Persistent link: https://www.econbiz.de/10013296828

Subordinated Debt, Market Discipline, and Bank Risk

Chen, Yehning - 2011

This paper demonstrates that subordinated debt (‘subdebt' thereafter) regulation can be an effective mechanism for disciplining banks. Under our proposal, investors buy the subdebt of a bank only if they receive favourable information about the bank, and the bank is subject to a regulatory...

Persistent link: https://www.econbiz.de/10013118815

Asymmetric Benchmarking in Bank Credit Rating

Shen, Chung-Hua - 2012

This study proposes an information asymmetry hypothesis to examine why bank credit ratings vary among countries even when bank financial ratios remain constant. Countries are divided among those with low and high information asymmetry. The former include high-income countries, those in North...

Persistent link: https://www.econbiz.de/10013107580

Bank Enforcement Actions and the Terms of Lending

Deli, Yota - 2017

Formal enforcement actions issued against banks for violations of laws and regulations related to safety and soundness can theoretically have both positive and negative effects on the terms of lending. Using data on such enforcement actions issued against U.S. banks, we show that they have a...

Persistent link: https://www.econbiz.de/10012969162

Interconnectedness Among Banks, Financial Stability, and Bank Capital Regulation

Chen, Yehning - 2016

This paper proposes that whether interconnectedness among banks leads to financial instability depends on banks' leverage decisions. It extends the network model in Allen et al. (2012) to study the relationship between interconnectedness and the banks' failure probability. In the model, banks...

Persistent link: https://www.econbiz.de/10012979287

Executive Equity Risk-Taking Incentives and Firm's Choice of Debt Structure

Chen, Yangyang - 2020

We examine how executive equity risk-taking incentives affect firms' choice of debt structure. Using a longitudinal sample of U.S. firms, we document that when executive compensation is more sensitive to stock volatility (i.e., has higher vega), firms reduce their reliance on bank debt...

Persistent link: https://www.econbiz.de/10012853594

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