Firm Size Dependence in the Determinants of Bank Term Loan Maturity
AbstractWe examine the hypothesis that firm size affects the sensitivity of bank term loan maturity to its underlying determinants. As borrower size increases, negotiating power with the lender and information transparency increase, while the lender is able to spread the fixed costs of loan production across a larger dollar value of the loan. We find strong evidence of firm size dependency in the determinants of bank term loan maturity and show that this is unrelated to syndication. Only "large" borrowers can manipulate bank loan contract terms so as to increase firm value. Copyright Blackwell Publishers Ltd, 2005.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Business Finance & Accounting.
Volume (Year): 32 (2005-01)
Issue (Month): 1-2 ()
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X
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- Weill, Laurent & Godlewski, Christophe, 2006.
"Does Collateral Help Mitigate Adverse Selection ? A Cross-Country Analysis,"
2508, University Library of Munich, Germany.
- Christophe Godlewski & Laurent Weill, 2011. "Does Collateral Help Mitigate Adverse Selection? A Cross-Country Analysis," Journal of Financial Services Research, Springer, vol. 40(1), pages 49-78, October.
- Laurent Weill & Christophe J. Godlewski, 2006. "Does Collateral Help Mitigate Adverse Selection? A Cross-Country Analysis," Working Papers of LaRGE Research Center 2006-02, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg (France).
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