How does firm prestige affect the cost of bank loans?

被引：2

作者：

Dai, Yunhao ^{[1
]}

Kordsachia, Othar ^{[2
]}

Tan, Weiqiang ^{[3
]}

机构：

[1] Huazhong Univ Sci & Technol, Sch Econ, Wuhan, Peoples R China

[2] Univ Hamburg, Dept Socioecon, Hamburg, Germany

[3] Educ Univ Hong Kong, Dept Social Sci, Ting Kok, Peoples R China

来源：

EUROPEAN JOURNAL OF FINANCE | 2023年 / 29卷 / 08期

基金：

中国国家自然科学基金;

关键词：

Bank loan spread; firm prestige; most admired companies; social capital; CORPORATE SOCIAL-RESPONSIBILITY; PRODUCT MARKET THREATS; COMPETITION; GOVERNANCE; REPUTATION; COVENANTS; DIRECTORS; IMPACT;

D O I：

10.1080/1351847X.2022.2057807

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Firm prestige reduces the cost of bank loans. Specifically, when borrowers are included in Fortune's list of 'America's Most Admired Companies' (MAC), their loan costs decline by approximately 12.3 bps on average. The effect appears causal. The negative relation between prestige and loan costs is more pronounced for borrowers in more competitive industries and with higher information uncertainty. Banks with weaker bargaining power offer favorable loan terms to the MAC ranked borrowers when they face a high degree of competition from other banks. The MAC ranking appears to be used by these banks as a summary statistic for loan quality in the face of competition.

引用

页码：888 / 918

页数：31

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