Stock price fragility and the cost of bank loans

Autor:	Yinjie Shen, Bill B. Francis, Pengfei Ye, Iftekhar Hasan
Rok vydání:	2021
Předmět:	Economics and Econometrics Bargaining power Fragility Institutional investor Positive relationship Business Monetary economics Volatility (finance) Finance Stock price Corporate management
Zdroj:	Journal of Empirical Finance. 63:118-135
ISSN:	0927-5398
DOI:	10.1016/j.jempfin.2021.06.001
Popis:	This study examines whether the flow volatility experienced by institutional investors affects firms’ financing costs. Using Greenwood and Thesmar’s (2011) stock price fragility measure, we find that there is a positive relationship between fragility and firms’ costs of bank loans. This effect is most pronounced when lenders rely more on institutional shareholders to discipline corporate management, or when loans are made by relationship lenders, suggesting that unstable flows could weaken institutional investors’ monitoring effectiveness and strengthen relationship banks’ bargaining power.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::10b48403155e615041b077d8fc5ab3b1 https://doi.org/10.1016/j.jempfin.2021.06.001 Zobrazit plný text záznamu Full Text from ScienceDirect