Relationship lending and bank loan covenant violations. (13th March 2021)
- Record Type:
- Journal Article
- Title:
- Relationship lending and bank loan covenant violations. (13th March 2021)
- Main Title:
- Relationship lending and bank loan covenant violations
- Authors:
- Bo, Xu Chong
Li, Wenyi
Shi, Jing
Zheng, Yi
Zhou, Qing - Abstract:
- Abstract: We examine the association between relationship lending and the likelihood of bank loan covenant violations. We find that relationship lending reduces the probability of ex‐post covenant violations. The length of the lending relationships has an inverted U‐shaped effect on the likelihood of covenant violations. The borrowers and lenders both benefit from relationship lending, but long‐term lending relationships weaken the borrower's bargaining power.
- Is Part Of:
- Accounting and finance. Volume 61:Number 4(2021)
- Journal:
- Accounting and finance
- Issue:
- Volume 61:Number 4(2021)
- Issue Display:
- Volume 61, Issue 4 (2021)
- Year:
- 2021
- Volume:
- 61
- Issue:
- 4
- Issue Sort Value:
- 2021-0061-0004-0000
- Page Start:
- 5847
- Page End:
- 5878
- Publication Date:
- 2021-03-13
- Subjects:
- Relationship lending -- Loan covenant violations -- Information asymmetry
Accounting -- Periodicals
Finance -- Periodicals
657.05 - Journal URLs:
- http://estar.bl.uk/cgi-bin/sciserv.pl?collection=journals&journal=08105391 ↗
http://onlinelibrary.wiley.com/ ↗ - DOI:
- 10.1111/acfi.12778 ↗
- Languages:
- English
- ISSNs:
- 0810-5391
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 0573.589300
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 20167.xml