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Of Religion and Redemption : Evidence from Default on Islamic Loans

Baele, Lieven - 2014

We compare default rates on conventional and Islamic loans using a comprehensive monthly dataset from Pakistan that follows more than 150,000 loans over the period 2006:04 to 2008:12. We find robust evidence that the default rate on Islamic loans is less than half the default rate on...

Persistent link: https://www.econbiz.de/10013068775

Creditor concentration: an empirical investigation

Ongena, Steven; Tümer-Alkan, Günseli; von … - 2007

Most of the literature addressing multiple banking assumes equal financing shares. However, unequal, concentrated or asymmetric bank borrowing is widespread. This paper investigates the determinants of creditor concentration for German firms using a comprehensive bank-firm level dataset for the...

Persistent link: https://www.econbiz.de/10010295934

Bank loan announcements and borrower stock returns: does bank origin matter?

Ongena, Steven; Roscovan, Viorel - 2009

Banks play a special role as providers of informative signals about the quality and value of their borrowers. Such signals, however, may have a quality of their own as the banks’ selection and monitoring abilities may differ. Using an event study methodology, we study the importance of the...

Persistent link: https://www.econbiz.de/10011605069

When the cat's away the mice will play: does regulation at home affect bank risk taking abroad?

Ongena, Steven; Popov, Alexander; Udell, Gregory F. - 2012

This paper provides the first empirical evidence that bank regulation is associated with cross-border spillover effects through the lending activities of large multinational banks. We analyze business lending by 155 banks to 9613 firms in 1976 different localities across 16 countries. We find...

Persistent link: https://www.econbiz.de/10011605533

Collateral damage? On collateral, corporate financing and performance

Cerqueiro, Geraldo; Ongena, Steven; Roszbach, Kasper - 2016

In this paper, we investigate the economy-wide effects of the collateral channel by exploiting: (i) a legal reform in Sweden in 2004 that reduced collateral values, and (ii) a dataset that covers all incorporated firms in Sweden over the period 2000-2006. We find that the loss in collateral...

Persistent link: https://www.econbiz.de/10011605963

Do Demand or Supply Factors Drive Bank Credit, in Good and Crisis Times?

Jiménez, Gabriel; Ongena, Steven; Peydró, José-Luis; … - 2017

We analyze the impact of balance-sheet strength on credit availability. Bank balance sheets are weak in crisis times, but so are those of firms, and credit demand is then also weak. For identification, we exploit an administrative dataset of loan applications matched with bank and firm variables...

Persistent link: https://www.econbiz.de/10012211203

Bank credit and market-based finance for corporations: The effects of minibond issuances

Ongena, Steven; Pinoli, Sara; Rossi, Paola; Scopelliti, … - 2020

We study the effects of the diversification of funding sources on the financing conditions for firms. We exploit a regulatory reform which took place in Italy in 2012, i.e., the introduction of "minibonds", which opened a new market-based funding opportunity for unlisted firms. Using the Italian...

Persistent link: https://www.econbiz.de/10012422170

Banks vs. markets: Are banks more effective in facilitating sustainability?

Newton, David P.; Ongena, Steven; Xie, Ru; Zhao, Binru - 2022

) risk? Using a novel sample covering 3,783 U.S. public firms from 2007 to 2020, we study how firm-level ESG risk affects its … financing outcomes. We find that companies with higher ESG risk borrow less from banks than from markets, potentially to avoid …' threats to end the lending arrangements. Finally, our results indicate that firms' ESG risk reduces after borrowing from banks …

Persistent link: https://www.econbiz.de/10013191631

Collateral Damaged? Priority Structure, Credit Supply, and Firm Performance

Cerqueiro, Geraldo; Ongena, Steven; Roszbach, Kasper - 2019

A unique legal reform in 2004 in Sweden redistributed collateral rights from banks holding floating liens to unsecured creditors without changing the value of assets on firms' balance sheets. Using a country-wide panel of all incorporated firms, we document that a zero-sum redistribution of...

Persistent link: https://www.econbiz.de/10012143946

Informal or formal financing? Or both? First evidence on the co-funding of Chinese firms

Degryse, Hans; Lu, Liping; Ongena, Steven - 2013

The recent financial crisis has reopened the debate on the impact of informal and formal finance on firm growth in developing countries. Using unique survey data, we find that in-formal finance is associated with higher sales growth for small firms and lower sales growth for large firms. We...

Persistent link: https://www.econbiz.de/10012148700