Document Type

Article

Publication Date

8-8-2012

Abstract

While theory predicts that bank loans provide valuable information to market participants, empirical results have been mixed. We propose and test the hypothesis that the benefits of bank loan announcements accrue differentially as a function of the borrowing firms’ financial or operating performance. Evidence from a sample of newly public firms supports this hypothesis. Keywords: bank lending, bank loan announcements, information asymmetry, newly public firms JEL Code: G14, G21.

Publication Title

International Research Journal of Applied Finance

Included in

Business Commons

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