Relationship lending and bank loan covenant violations

被引：0
|
作者：
Bo, Xu Chong [1 ]
Li, Wenyi [2 ]
Shi, Jing [3 ,4 ]
Zheng, Yi [4 ]
Zhou, Qing [4 ]
机构：
[1] Jiangxi Univ Finance & Econ, Sch Publ Finance & Publ Adm, Nanchang, Jiangxi, Peoples R China
[2] Cent China Normal Univ, Sch Econ & Business Adm, Wuhan, Peoples R China
[3] Shandong Univ Finance & Econ, Sch Finance, Jinan, Peoples R China
[4] Macquarie Univ, Dept Appl Finance, Sydney, NSW, Australia
来源：
ACCOUNTING AND FINANCE | 2021年 / 61卷 / 04期
关键词：
Relationship lending; Loan covenant violations; Information asymmetry;
D O I：
10.1111/acfi.12778
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine the association between relationship lending and the likelihood of bank loan covenant violations. We find that relationship lending reduces the probability of ex-post covenant violations. The length of the lending relationships has an inverted U-shaped effect on the likelihood of covenant violations. The borrowers and lenders both benefit from relationship lending, but long-term lending relationships weaken the borrower's bargaining power.
引用
下载
收藏
页码：5847 / 5878
页数：32
相关论文
共 50 条
  • [1] The impact of entrepreneurial firm social purpose on bank loan officer decisions: a study of loan covenant violations
    Austin, Rebekah
    Weinberger, Andrew Scott
    Mohundro, Jon
    JOURNAL OF SMALL BUSINESS AND ENTERPRISE DEVELOPMENT, 2022, 29 (07) : 1089 - 1107
  • [2] Covenant violations and dynamic loan contracting
    Freudenberg, Felix
    Imbierowicz, Bjorn
    Saunders, Anthony
    Steffen, Sascha
    JOURNAL OF CORPORATE FINANCE, 2017, 45 : 540 - 565
  • [3] The impact of board gender composition on loan covenant violations
    Alam, Md Samsul
    Atif, Muhammad
    Cumming, Douglas
    Islam, Md Shahidul
    CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 2024, 32 (04) : 703 - 731
  • [4] Loan duration and bank lending policy
    Roszbach, KF
    COMPUTATIONAL FINANCE 1999, 2000, : 549 - 563
  • [5] Loan types and the bank lending channel
    Ivashina, Victoria
    Laeven, Luc
    Moral-Benito, Enrique
    JOURNAL OF MONETARY ECONOMICS, 2022, 126 : 171 - 187
  • [6] Managerial overconfidence and bank loan covenant usage
    Voon, Jan P.
    Lin, Chen
    Ma, Yiu. C.
    INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, 2022, 27 (04) : 4575 - 4598
  • [7] Conservative Loan Loss Allowance and Bank Lending
    Takasu, Yusuhe
    Nakano, Makoto
    JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS, 2019, 6 (03): : 9 - 18
  • [8] Loan officers and relationship lending to SMEs
    Uchida, Hirofumi
    Udell, Gregory F.
    Yamori, Nobuyoshi
    JOURNAL OF FINANCIAL INTERMEDIATION, 2012, 21 (01) : 97 - 122
  • [9] Bank lending and loan quality: an emerging economy perspective
    Chavan, Pallavi
    Gambacorta, Leonardo
    EMPIRICAL ECONOMICS, 2019, 57 (01) : 1 - 29
  • [10] Bank lending and loan quality: an emerging economy perspective
    Pallavi Chavan
    Leonardo Gambacorta
    Empirical Economics, 2019, 57 : 1 - 29
12345