IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v30y2023i5p1226-1245.html
   My bibliography  Save this article

How do investors view firm’s customer concentration through bank loan announcements? Evidence from China

Author

Listed:
  • Morris Ming Liu
  • Patrick Kuok Kun Chu
  • Wenya Zhou

Abstract

This study provides evidence on how investors evaluate the value of firms’ customer concentration. This study is the first study that divides the bank loan announcement data into approved loans and rejected loans to investigate investors’ reactions toward the bank loan announcements. We examine the relationship between the borrowing firm’s customer concentration and cumulative abnormal returns upon approved and rejected bank loan announcements for Chinese listed firms between 2002 and 2018. The effect of firm’s customer concentration on the abnormal returns is evaluated by OLS regression model controlled by some firm’s characteristics. The study finds that firms with higher customer concentration incur more negative cumulative abnormal returns upon rejected loan announcements but exhibit no significant difference upon approved loan announcements.

Suggested Citation

  • Morris Ming Liu & Patrick Kuok Kun Chu & Wenya Zhou, 2023. "How do investors view firm’s customer concentration through bank loan announcements? Evidence from China," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 30(5), pages 1226-1245, September.
    • Handle: RePEc:taf:raaexx:v:30:y:2023:i:5:p:1226-1245
    DOI: 10.1080/16081625.2022.2127807
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2022.2127807
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2022.2127807?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:30:y:2023:i:5:p:1226-1245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.