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This paper examines whether firm reputation impacts borrowing costs and thus investment. Using unique data from Fortune … reputation measures removing the impact of prior financial performance. Further evidence suggests that banks reward reputable … firms with better contract terms because this reputation proxy contains incremental information on borrower future …
Persistent link: https://www.econbiz.de/10012848288
rates. We also explore how a lead bank's reputation and previous relationships with the borrowing firm alter such … that lead bank reputation can substitute for the need to certify via higher loan retention. Meanwhile, past relationships …
Persistent link: https://www.econbiz.de/10013156880
We focus on the determinants and potentially associated benefits of relationship banking. Based on existing literature and the unique role intangible assets might play regarding asymmetric information, we derive three testable predictions. Using rich data on firm-bank relationships in Germany,...
Persistent link: https://www.econbiz.de/10013005257
On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011554963
Do heightened capital requirements impose private costs on banks by adversely affecting their cost of capital? And if so, does the effect differ across different groups of banks? Using an international sample of listed banks over the period from 1990 to 2017, I find that equity investors adjust...
Persistent link: https://www.econbiz.de/10012850449
This paper studies bank new equity offerings in response to recently strengthened Basel capital regulation. Our empirical analyses investigate the determinants of issuing new equity and estimate its costs in sample selection model. The key finding is that weak capital base is one of the key...
Persistent link: https://www.econbiz.de/10013033758
Using a large panel of U.S. public firms, we exploit the staggered deregulation of interstate bank branching laws to examine whether banking competition affects the implied cost of equity. We hypothesize that banking competition may result in weakened banks’ ability to access borrower firms’...
Persistent link: https://www.econbiz.de/10013405081
This paper investigates the determinants of new equity offerings and estimates its costs in sample selection model. The main finding is that a weak capital base is one of the key driving forces of the new issuance around the recently strengthened Basel regulations, although banks were not...
Persistent link: https://www.econbiz.de/10013028111
This paper investigates the determinants of new equity offerings and estimates its costs in sample selection model. The main finding is that a weak capital base is one of the key driving forces of the new issuance around the recently strengthened Basel regulations, although banks were not...
Persistent link: https://www.econbiz.de/10013028112
Persistent link: https://www.econbiz.de/10012230218