Do shareholder rights affect the cost of bank loans

Review of Financial Studies

Volumn 22, Issue 8, 2009, Pages 2973-3004

  Chava, Sudheer ^a   Livdan, Dmitry ^b   Purnanandam, Amiyatosh ^c  

^a TEXAS A AND M UNIVERSITY   (United States)

^b UNIVERSITY OF CALIFORNIA   (United States)

^c UNIVERSITY OF MICHIGAN   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 68349130284     PISSN: 08939454     EISSN: 14657368     Source Type: Journal    
DOI: 10.1093/rfs/hhn111     Document Type: Article

References (39)

1. Altman, E., A. Gande, and A. Saunders. 2004. Informational Efficiency of Loans Versus Bonds: Evidence from Secondary Market Prices. Working Paper, New York University.
2. Bae, Kee-Hong, and Vidhan Goyal. Forthcoming. Creditor Rights, Enforcement and Bank Loans. Journal of Finance.
3. Bebchuk, L. A., A. Cohen, and A. Ferrell. 2004. What Matters in Corporate Governance? Discussion Paper 491, Harvard University.
4. Berger, A., and G. Udell. 1990. Collateral, Loan Quality and Bank Risk. Journal of Monetary Economics 25:21-42.
5. Bhojraj, S., and P. Sengupta. 2003. Effect of Corporate Governance on Bond Ratings and Yields: The Role of Institutional Investors and Outside Directors. Journal of Business 76:455-75.
6. Billett, M., D. King, and D. Mauer. 2004. Bondholder Wealth Effects in Mergers and Acquisitions: New Evidence from the 1980s and 1990s. Journal of Finance 59(1):107-35.
7. Black, B., and R. Gilson. 1995. The Law and Finance of Corporate Acquisitions, 2nd ed. Westbury, NY: Foundation Press.
8. Chava, S., and R. Jarrow. 2004. Bankruptcy Prediction with Industry Effects. Review of Finance 8(4):537-69.
9. Chava, S., P. Kumar, and A. Warga. 2007. Managerial Moral Hazard and Bond Covenants. Working Paper, University of Houston.
10. Chava, S., and M. R. Roberts. 2008. How Does Financing Impact Investment? The Role of Debt Covenant Violations. Journal of Finance 63(5):2085-121.
11. Coates, J. C. 1999. An Index of the Contestability of Corporate Control: Studying Variation in Legal Takeover Vulnerability. Working Paper, Harvard Law School.
12. Cremers, M., and V. Nair. 2005. Governance Mechanisms and Equity Prices. Journal of Finance 60(6):2859-94.
13. Cremers, M., V. Nair, and C. Wei. 2007. The Impact of Shareholder Control on Bondholders. Review of Financial Studies 20:1359-88.
14. Cook, D. O., and J. D. Martin. 1991. The Coinsurance and Leverage Effects on Target Firms Bondholder Wealth. Research in Finance 9:107-29.
15. Daines, R. 2001. Does Delaware Law Improve Firm Value? Journal of Financial Economics 62:525-58.
16. Drucker, S., and M. Puri. 2005. On the Benefits of Concurrent Lending and Underwriting. Journal of Finance 60:2763-99.
17. Esty, B. C., and W. L. Megginson. 2003. Creditor Rights, Enforcement, and Debt Ownership Structure: Evidence from the Global Syndicate Loan Market. Journal of Financial and Quantitative Analysis 38:37-59.
18. Fiflis, T. 1991. Accounting Issues for Lawyers. St. Paul, MN: West Publishing.
19. Ghosh, A., and P. C. Jain. 2000. Financial Leverage Changes Associated with Corporate Mergers. Journal of Corporate Finance 6:377-402.
20. Gompers, P., J. L. Ishii, and A. Metrick. 2003. Corporate Governance and Equity Prices. Quarterly Journal of Economics 118:107-55.
21. Graham, J., M. Lemmon, and J. Schallheim. 1998. Debt, Leases, Taxes, and the Endogeneity of Corporate Tax. Journal of Finance 53:131-62.
22. Houston, J., and C. James. 1996. Bank Information Monopolies and Mix of Private and Public Debt Claims. Journal of Finance 51:1863-89.
23. Ivashina, V. 2007. The Effect of Syndicate Structure on Loan Spreads. Working Paper, New York University.
24. Ivashina, V., N. Massoud, V. Nair, and A. Saunders. 2005. Bank Debt and Corporate Governance. Working Paper, New York University.
25. Jahera, J., and W. Pugh. 1991. State Takeover Legislation: The Case of Delaware. Journal of Law, Economics and Organization 7:410-36.
26. Jandik, T., and A. Makhija. 2005. The Impact of the Level and Structure of Debt on Target Gains: The Role of Public, Bank, and Private Non-Bank Debt. Working Paper, Ohio State University.
27. Jensen, M., and W. Meckling. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics 3:305-60.
28. John, K., A. Lynch, and M. Puri. 2003. Credit Ratings, Collateral and Loan Characteristics: Implications for Yield. Journal of Business 76(3):371-409.
29. Kim, E. H., and J. J. McConnell. 1977. Corporate Mergers and the Co-Insurance of Corporate Debt. Journal of Finance 32:349-65.
30. Klock, M. S., S. A. Mansi, and W. F. Maxwell. 2005. Corporate Governance and the Agency Cost of Debt. Journal of Financial and Quantitative Analysis 40(4):693-719.
31. Moeller, S., F. Schlingemann, and R. Stulz. 2003. Firm Size and the Gains from Acquisitions. Journal of Financial Economics 73:201-28.
32. Morellec, E., and C. Smith. 2007. Agency Conflicts and Risk Management. Review of Finance 11(1):1-23.
33. Peterson, C., and N. Hawker. 1997. Does Corporate Law Matter? Legal Capital Restrictions on Stock Distributions. Akron Law Review 31:175-228.
34. Rankine, G., and E. Stice. 1997. Accounting Rules and the Signaling Properties of 20 Percent Stock Dividends: Accounting Review 72:23-46.
35. Shumway, T. 2001. Forecasting Bankruptcy More Accurately: A Simple Hazard Model. Journal of Business 74:101-24.
36. Subramanian, G. 2002. The Disappearing Delaware Effect. Working Paper, Harvard University.
37. Sufi, A. 2007. Information Asymmetry and Financing Arrangements: Evidence from Syndicated Loans. Journal of Finance 62(2):629-68.
38. Wald, J., and M. Long. 2007. The Effect of State Laws on Capital Structure. Journal of Financial Economics 83:297-319.
39. Warga, A., and I. Welch. 1993. Bondholder Losses in Leveraged Buyouts, Review of Financial Studies 6:959-82.