Lending corruption is an important agency problem for banks. Using data from the World Bank Business Environmental Survey, we find that in countries with more lending corruption, banks give more favorable loan terms to borrowers. This relation is stronger when firms are under more financing...

We examine whether and how lending banks around the world respond to borrowers' carbon emissions – the major contributors to global warming – in their lending decisions. We find that banks charge a higher loan spread and apply stricter non-price terms to borrowing firms with larger direct...

Masulis and Mobbs (2014, 2015) find that independent directors with multiple directorships allocate their monitoring effort unequally based on a directorship's relative prestige. We investigate whether bank loan contract terms reflect such unequal allocation of directors' monitoring effort. We...

Effective from January 1, 2018, IFRS 9 changed banks' accounting for the impairment of financial assets by replacing the incurred credit loss (ICL) model with the expected credit loss (ECL) model, which enhances the timeliness of accounting for credit losses. Using a sample of international...