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Abstract:
We investigate whether abnormal institutional attention (AIA, measured following Ben-Rephael, Da, and Israelsen, 2017) influences bank loans. First, we find that AIA is positively related to borrowers' cumulative abnormal returns around loan announcements. Second, banks charge a significantly lower loan spread, require less collateral, and approve larger loans for borrowers with higher AIA. Third, the effect of AIA becomes stronger when borrowers have high information asymmetry and weak market competition. Overall, our findings support the idea that banks consider AIA information when making lending decisions.
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Source :
JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY
ISSN: 1042-4431
Year: 2022
Volume: 76
4 . 0
JCR@2022
5 . 4 0 0
JCR@2023
ESI Discipline: ECONOMICS & BUSINESS;
ESI HC Threshold:62
JCR Journal Grade:1
CAS Journal Grade:2
Cited Count:
WoS CC Cited Count: 0
SCOPUS Cited Count:
ESI Highly Cited Papers on the List: 0 Unfold All
WanFang Cited Count:
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30 Days PV: 0
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