Bank loan contracting and corporate diversification: Does organizational structure matter to lenders?

This paper investigates the effect of corporate diversification on the pricing of bank-loan contracts. We find that diversified firms have significantly lower loan rates than comparable focused firms, and we find no evidence that diversified firms are subject to more restrictive non-price contract t...

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Bibliographic Details

Published in:	Journal of financial intermediation Vol. 24; no. 2; pp. 252 - 282
Main Authors:	Aivazian, Varouj A., Qiu, Jiaping, Rahaman, Mohammad M.
Format:	Journal Article
Language:	English
Published:	San Diego Elsevier BV 01.04.2015
Subjects:	Analysis Bank loans Banking Banks Cash flow Companies Contracts Diversification Financial theory Financing Loans Maturity Organizational structure Pricing Studies
ISSN:	1042-9573, 1096-0473
Online Access:	Get full text
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