当前位置: X-MOL 学术Journal of Corporate Finance › 论文详情
Our official English website, www.x-mol.net, welcomes your feedback! (Note: you will need to create a separate account there.)
Local product market competition and bank loans
Journal of Corporate Finance ( IF 5.107 ) Pub Date : 2021-07-27 , DOI: 10.1016/j.jcorpfin.2021.102054
Iftekhar Hasan 1, 2, 3 , Yi Shen 4 , Xiaojing Yuan 5
Affiliation  

We investigate the influences of local product market competition on the cost of private debt. Our evidence suggests that the cost of bank loans is significantly higher for firms headquartered in states with greater local product market competition measured by the Herfindahl-Hirschman Index for resident industries. To establish causality, we examine the recognition of the Inevitable Disclosure Doctrine and firm relocations to identify exogenous shocks to local product market competition. We find that the cost of bank loans is lower for firms facing less intense local product market competition after the adoption of IDD and higher for firms relocated to states with more competitive product markets. The results imply that banks value the characteristics of a firm's local product market when approving loan contracts.



中文翻译:

本地产品市场竞争与银行贷款

我们调查了当地产品市场竞争对私人债务成本的影响。我们的证据表明,对于总部设在当地产品市场竞争更激烈的州的公司,银行贷款的成本要高得多,根据居民行业的 Herfindahl-Hirschman 指数衡量。为了确定因果关系,我们研究了对不可避免披露原则和公司搬迁的认可,以确定对本地产品市场竞争的外生冲击。我们发现,在采用 IDD 后,当地产品市场竞争不那么激烈的公司的银行贷款成本较低,而搬迁到产品市场竞争更激烈的州的公司则较高。结果表明,银行在批准贷款合同时会重视公司本地产品市场的特征。

更新日期:2021-08-01
down
wechat
bug