We find that stock price crash risk is positively associated with lagged equity lending fee and fee risk. This positive relation is stronger for the stocks with a lower short interest level and higher information uncertainty. Our results are robust to using alternative measures of price crash...

We analyze whether the disaggregation quality (DQ) of a borrower's financial statement is associated with its bank loan pricing. We find that firms with low DQ have high bank loan spreads and total cost of borrowing. These results are more pronounced for risky and poorly governed firms....

Using a novel dataset of firm-level perceived trustworthiness from the news media and social media, we find that lending banks charge significantly higher loan spread on firms with lower trustworthiness. Loans to these firms also tend to have shorter loan maturities, more financial covenants,...

Using a comprehensive firm-level and a unique confidential loan-level combined dataset, we examine the credit reallocation effects of minimum wage hikes in China. We show that in response to a wage rise shock, firms, especially those that are labor-intensive, are less likely to obtain a loan....

In this paper, we examine whether cultural biases exist in international syndicated loans. We find that the more positive the perception of trustworthiness that the lender’s country has for the borrower’s country, then the lower the spreads the lender will charge the borrower. We use four...

While there is no apparent reason for loan spreads to cluster at certain numbers, we find that around 70% of bank loans have round-yard spreads (i.e., multiples of 25 basis points). We hypothesize that dominant banks implicitly collude by using the round-yards as focal pricing points when...

The Financial Accounting Standards Board issued the current expected credit loss (CECL) standard, which requires banks to take a forward-looking approach to recognizing life-of-loan losses upon loan origination. Using bank mortgage approval decisions at the ZIP code level and a...