Corporate Misconduct and the Cost of Private Debt: Evidence from China

被引：2
|
作者：
Gu, Xian [1 ]
Hasan, Iftekhar [2 ,3 ,4 ]
Lu, Haitian [5 ]
机构：
[1] Cent Univ Finance & Econ, Beijing, Peoples R China
[2] Fordham Univ, New York, NY 10023 USA
[3] Bank Finland, Helsinki, Finland
[4] Univ Sydney, Sydney, NSW, Australia
[5] Hong Kong Polytech Univ, Kowloon, Hong Kong, Peoples R China
来源：
COMPARATIVE ECONOMIC STUDIES | 2019年 / 61卷 / 03期
关键词：
Litigation; Loan spreads; Political connection; Relationship; REPUTATION; LITIGATION; OWNERSHIP; PENALTIES; LAW;
D O I：
10.1057/s41294-019-00099-8
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Using a comprehensive dataset of corporate lawsuits in China, we investigate the implications of corporate misconduct on the cost of private debt. Evidence reveals that firms involved in litigations obtain subsequent loans with stricter pricing terms, 15.1 percent higher loan spreads, than non-litigated borrowers. Strong political connection and repeated relationship help to flatten the sensitivity of loan pricing to litigation. Nonbank financial institutions react in stronger manner to corporate misconduct than traditional banks in pricing loans. Overall, we show that private debt holders care about borrowers' wrongdoing in the past.
引用
收藏
页码：443 / 463
页数：21
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