Showing 31 - 40 of 152,585
We investigate how the introduction of market-based pricing, the practice of tying loan interest rates to credit …
Persistent link: https://www.econbiz.de/10010250693
We find that prestigious companies pay lower spreads and upfront fees on their loans despite the fact that prestige does not predict default risk over the life of the loan. Using survey data on firm-level prestige, we show that a one standard deviation increase in prestige reduces loan spreads...
Persistent link: https://www.econbiz.de/10011543355
inclusion of a broad set of loan-level controls and fixed effects. We also find that the spread between high and low credit …
Persistent link: https://www.econbiz.de/10011457389
The long-run price elasticity of demand for credit is a key parameter for intertemporal modeling, policy levers, and … number of borrowers is also elastic. Credit bureau data does not show evidence of crowd-out. Competitors do not respond by …
Persistent link: https://www.econbiz.de/10013081249
I explore a sample of private bank loan agreements collected from LPC Dealscan and empirically test the marginal effect of covenants inclusion on loan spread, conditioning on the extent of information asymmetry between the firms and the lead banks. I apply two measures of covenants inclusion,...
Persistent link: https://www.econbiz.de/10013085112
The long-run price elasticity of demand for credit is a key parameter for intertemporal modeling, policy levers, and … number of borrowers is also elastic. Credit bureau data does not show evidence of crowd-out. Competitors do not respond by …
Persistent link: https://www.econbiz.de/10013072069
This paper provides a more direct test of the superior information hypothesis of banks and informs a long standing policy debate about whether banks serve a special information role in the economy. I circumvent the self-selection bias that contaminated prior studies by obtaining bank loan...
Persistent link: https://www.econbiz.de/10013075262
. Collectively, our results suggest that perceived firm trustworthiness from the stakeholders conveys valuable credit quality …
Persistent link: https://www.econbiz.de/10012841942
Against the backdrop of a high stock of non-performing loans (NPLs) in several European countries, this paper investigates the role of NPLs for lending rates charged for newly granted loans in the euro area. More precisely, it looks for an effect that extends beyond losses caused by that stock...
Persistent link: https://www.econbiz.de/10012894494
, low credit rating, and high bond issuing spreads. Overall, our results suggest that DQ conveys valuable credit quality …
Persistent link: https://www.econbiz.de/10012900112