We find that increases in lending by Japanese Government Owned Bank (GOB) during the crisis in early 1990's had a strong incremental impact on firm level investment, especially for credit constrained firms. Firms have better future accounting performance when their investment is associated with...

We test for differences in information asymmetry across two organizational forms (external and internal) in the REIT industry. We find significant differences with external REITs being significantly more transparent relative to internal REITs, and these differences are reflected in the loan...

This paper provides a comprehensive examination of the time series behavior of relationship banks around and during borrower distress. Relationship and outside loans have similar interest rates during distress, and even two years prior to distress. Relative to outside loans in distress,...

This article sketches, conceptually and empirically, the nature and magnitude of the economic gains associated with the impact of legal reform covering the financing of commercial aircraft and aircraft engines as contemplated by the proposed UNIDROIT Convention on International Interests in...

Do the legal rights of creditors influence whether firms borrow from arm's length or relationship lenders in a country? In this paper, we examine this question by exploiting the staggered adoption of legal reforms that changed creditor rights. We show that as creditor rights strengthen, firms...

We examine the valuation impact of bank-financed M&As and the loan contracts used to finance M&A transactions, focusing on the difference between bank-dependent acquirers and other acquirers. We find that bank-financed deals have higher acquirer's CARs relative to other cash M&A deals, but this...

This paper examines the financial impact of a transfer of legal sovereignty covering the rights to collateral to an international regime in the case of the Cape Town Convention and Protocol covering international mobile assets, specificallycommercial aircraft and related equipment, which came...

One of the most important risks faced by a bank is that of loan default by its borrowers. Existing literature has documented the negative announcement-period returns for lending banks when a big sovereign borrower announces a moratorium on its bank loans. In contrast, little research has been...

We use a unique data set of bank loans to examine the wealth effects on lead lending banks when their borrowers suffer financial distress. We find a significant negative announcement return for the lead lending bank when a major corporate borrower announces default or bankruptcy. Banks with...