Owner Guarantees, Observed and Unobserved Risks, and Bank Lending Spreads

• Tipo: Artigo em Revista Científica Internacional
• Data: 2024

Autores

Duarte, Fábio (Autor) FEP; Gama, APM (Autor) Outra; Gulamhussen, MA (Autor) Outra

Revista

Título: JOURNAL OF FINANCIAL SERVICES RESEARCH

ISSN: 0920-8550

Indexação

ISI Web of Knowledge - 0 Citações

Scopus - 0 Citações

Outras Informações

ID Authenticus: P-010-ZYZ

DOI: 10.1007/s10693-024-00434-w

Abstract (EN): In this paper, we examine the influence of owner guarantees on loan rates. Other studies on the influence of business collateral have used survey and credit register data to establish this link. They support it with the pre-lending information theory and post-lending incentive theory and find that the latter predominates the former. Thus, we measure observed and unobserved risks on bank lending spreads negotiated over the counter to show the co-existence of both theories. The main findings and robustness tests show that owner guarantees reduce bank lending spreads for safe but not risky firms, supporting the pre-lending information theory rather than the post-lending incentive theory. These findings underscore the role of owner guarantees in allaying the information problems the bank confronts prior to lending.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Nº de páginas: 41