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characteristic, specifically the borrower's network strength, helps reduce costs by altering the bank's lending decisions. The … theoretically model the lender's decision making problem with network effect. We specifically examine how a bank sets the interest … out better borrowers. Finally, bank's substitute monitoring effort with network strength for a more feasible interest rate …
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We examine the impact of lead arrangers' reputation on the design of loan contracts such as spread and fees charged. Controlling for the non-randomness of the lender-borrower match (self-selection bias), we find that the reputation of top tier arrangers leads to higher spreads, and that top tier...
Persistent link: https://www.econbiz.de/10013130241
This paper examines whether firm reputation impacts borrowing costs and thus investment. Using unique data from Fortune's Most Admired Companies surveys, I find that reputable borrowers enjoy lower borrowing costs and receive more favorable loan contract terms. My identification strategy is...
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Bank credit policies in Nigeria are very critical for some reasons. One bank credit is the oil on the wheel of economic … sector distress in Nigeria, particularly in the 1990s, through 2011. The study designed to explore the power of bank credit …, percentages and the X2 statistics. It was found that bank credit has significant relationship with economic growth and socio …
Persistent link: https://www.econbiz.de/10013072734
the bank lending industry. This paper analyzes the credit information market as a particular case of vertical … disintegration in the bank credit origination value chain. The main aim is to identify the relevant drivers which lead to vertical … analyses the different structures of credit reporting. Section 6 analyzes the bank decisions to make or buy credit reporting in …
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This paper aims to investigate the drivers of the emerging loan broker market in the lending business value chain. Transaction cost economics, the dominant paradigm for understanding make or buy decisions, represents the starting point of my research. Capabilities based view of banking firms and...
Persistent link: https://www.econbiz.de/10013112526