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The month-of-the-year effect in corporate lending

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  • Bertrand, Jérémie
  • Burietz, Aurore
  • Weill, Laurent

Abstract

We investigate the existence of calendar effect in corporate lending decisions. We show that the loan amount granted by banks significantly varies across months. We find a positive effect of quarter-end and year-end months on the loan amount. We attribute these effects to trade loading behavior, according to which banks would inflate granted loans at the end of the quarter and the year to hit financial targets.

Suggested Citation

  • Bertrand, Jérémie & Burietz, Aurore & Weill, Laurent, 2021. "The month-of-the-year effect in corporate lending," Finance Research Letters, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000957
    DOI: 10.1016/j.frl.2021.102014
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    More about this item

    Keywords

    Calendar effect; Corporate loans; Trade loading;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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