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This paper documents that the bond investments of insurance companies transmit shocks from insurance markets to the real economy. Liquidity windfalls from household insurance purchases increase insurers' demand for corporate bonds. Exploiting the fact that insurers persistently invest in a small...
Persistent link: https://www.econbiz.de/10012818411
Persistent link: https://www.econbiz.de/10001702683
leverage on GDP, credit and the interest rate spread. Increasing capital requirements for banks should therefore have no strong …
Persistent link: https://www.econbiz.de/10011667888
Persistent link: https://www.econbiz.de/10001664361
This paper studies whether banks charge higher or lower interest rates on loans to firms with overconfident CEOs. It establishes a theoretical model to show the relationship between the loan rate and overconfidence of the borrowing firm's CEO. It also conducts empirical analyses to test the...
Persistent link: https://www.econbiz.de/10012998312
This paper studies whether banks charge higher or lower interest rates on loans to firms with overconfident CEOs. It establishes a theoretical model to show the relationship between the loan rate and overconfidence of the borrowing firm's CEO. It also conducts empirical analyses to test the...
Persistent link: https://www.econbiz.de/10013000941
– spread, amount, maturity, collateral, and covenants –suggesting increased credit supply to borrowers of bailed-out banks at …
Persistent link: https://www.econbiz.de/10012969974
To gain a better understanding of the financing motive theories of trade credit, we trace a sample of young firms from … decisions do not seem to be tied to firms' financial conditions. As a result, availability of trade credit does not help to … obtain bank credit. Our findings not only help to explain why supplier lending and bank lending co-exist, but also highlight …
Persistent link: https://www.econbiz.de/10013026160
We provide novel evidence on the nexus between a firm’s symbolic environmental disclosure to present an overly responsible public image, i.e., greenwashing, and the structure and design of its bank-loan contracts. Our evidence indicates that while greenwashing is associated with lower loan...
Persistent link: https://www.econbiz.de/10013219640
We investigate how a borrower’s adverse climate-related incidents affect bank loan contracting. Using a sample of 2,622 publicly traded US firms over the period 2000–2016, we construct event-based measures of corporate climate performances based on firm-level adverse climate incidents such...
Persistent link: https://www.econbiz.de/10013242700