Ackert, Lucy F.
[VerfasserIn]
;
Huang, Rongbing
[Sonstige Person, Familie und Körperschaft];
Ramirez, Gabriel G.
[Sonstige Person, Familie und Körperschaft]
Information Opacity, Credit Risk, and the Design of Loan Contracts for Private Firms
Anmerkungen:
In: Financial Markets, Institutions and Instruments, 2007
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 29, 2007 erstellt
Beschreibung:
This paper examines the structure and cost of a large sample of bank loans to private firms. Compared to public firms, private firms are more informationally opaque and riskier. The results suggest that the design of a loan to a private firm is significantly different from that to a public firm. Bank loans to private firms are more likely to be by a sole lender, collateralized, and have sweep covenants than loans to public firms. The cost of borrowing is higher for a private firm than for a public firm, even after holding constant firm and loan characteristics