Berger, Allen N.; El Ghoul, Sadok; Guedhami, Omrane; … - 2021
We contribute to the corporate capital structure and bank specialness literatures by studying the effects of bank debt … observations. We find that bank term loans and credit lines are strongly positively associated with firm value, but only when … employed very intensively—at 90% or more of total corporate debt. These effects are consistent with bank specialness at high …
