Narrow search
Showing 1 - 10 of 340
Cover Image
Are Credit Rating Disagreements Priced in the M&A Market?
Hasan, Iftekhar; Huang, He; To, Thomas Y. - 2022
This paper examines the effect of credit rating disagreements on merger and acquisition (M&A) decisions. We show that acquirers with split ratings prefer to use stock to finance their acquisitions. More importantly, we find that acquirers with split ratings experience lower announcement returns....
Persistent link: https://www.econbiz.de/10013404205
Cover Image
Debt Structure When Bankruptcy Law Offers Incentives to Restructure
Hasan, Iftekhar - 2019
We augment the LLSV creditor rights index with a new “restructuring index” that measures the incentives provided to … restructuring index is low, and private placements increase when the restructuring index is high, but the creditor rights index is … low. Smaller firms with fewer tangible assets borrow more from banks when both the creditor rights and restructuring …
Persistent link: https://www.econbiz.de/10012903408
Cover Image
CEO Compensation and Covenant Violations
Francis, Bill B. - 2020
This paper investigates the impact of managerial compensation on the likelihood of covenant violations and reports that higher CEO risk-shifting incentives significantly increase the likelihood of covenant violations. Evidence suggests that CEOs with creditor unfriendly compensation in leveraged...
Persistent link: https://www.econbiz.de/10012857455
Cover Image
Loan Syndication under Basel II : How Credit Ratings Affect Cost of Credit?
Hasan, Iftekhar - 2020
This paper investigates how lenders react to borrowers' rating changes under heterogeneous conditions and different regulatory regimes. Our findings suggest that corporate downgrades that increase capital requirements for lending banks under the Basel II framework are associated with increased...
Persistent link: https://www.econbiz.de/10012823142
Cover Image
Syndicated Bank Lending and Rating Downgrades : Do Sovereign Ceiling Policies Really Matter?
Hasan, Iftekhar - 2020
We examine the effect of firm credit rating downgrades on the pricing and structure of syndicated bank loans following rating downgrades in the firms' countries of domicile. We find that the sovereign ceiling policies used by credit rating agencies create a disproportionally adverse impact on...
Persistent link: https://www.econbiz.de/10012827206
Cover Image
The Determinants of Option-Adjusted Delta Credit Spreads : A Comparative Analysis of the United States, the United Kingdom and the Euro Area
Becchetti, Leonardo - 2009
We analyse the determinants of the variation of option-adjusted credit spreads (OASs) on a unique database that enlarges the traditional scope of analysis to more disaggregated indexes (combining industry, grade and maturity levels), new variables (volumes of sales and purchases of institutional...
Persistent link: https://www.econbiz.de/10013153595
Cover Image
Credit Default Swaps and Bank Loan Sales : Evidence from Bank Syndicated Lending
Hasan, Iftekhar - 2017
We empirically examine three channels in the relation between banks' CDS trading and loan sales. The substitute channel predicts a negative relation between CDS hedging and loan sales, and the complementary channel predicts a positive relation. The credit-enhancement channel predicts a positive...
Persistent link: https://www.econbiz.de/10012971614
Cover Image
How Large Banks Use CDS to Manage Risks : Bank-Firm-Level Evidence
Hasan, Iftekhar - 2015
We test five hypotheses on whether banks use CDS to hedge corporate loans, provide credit enhancements, obtain regulatory capital relief, and exploit banking relationship and private information. Using new data that link large banks' CDS positions and syndicated lending on individual firms, we...
Persistent link: https://www.econbiz.de/10013021173
Cover Image
Gender, credit, and firm outcomes
Delēs, Manthos D.; Hasan, Iftekhar; Iosifidi, Maria; … - 2019
Small and micro enterprises are usually majority owned by entrepreneurs. Using a unique sample of loan applications from such firms, we study the role of owners' gender in the credit decision of banks and the post-credit decision firm outcomes. We find that, ceteris paribus, female entrepreneurs...
Persistent link: https://www.econbiz.de/10012177373
Cover Image
Creditor Control Rights and the Non-Synchronicity of Global CDS Markets
Hasan, Iftekhar; Marra, Miriam; Wu, Eliza; Zhang, Gaiyan - 2023
We analyze how creditor rights affect the nonsynchronicity of global corporate credit default swap spreads (CDS-NS). We find that CDS-NS is negatively related to the country-level creditor-control rights, especially to the “restrictions on reorganization” component, where...
Persistent link: https://www.econbiz.de/10014254224