Corporate misreporting and bank loan contracting
Publication
, Journal Article
Graham, JR; Li, S; Qiu, J
Published in: Journal of Financial Economics
July 1, 2008
This paper is the first to study the effect of financial restatement on bank loan contracting. Compared with loans initiated before restatement, loans initiated after restatement have significantly higher spreads, shorter maturities, higher likelihood of being secured, and more covenant restrictions. The increase in loan spread is significantly larger for fraudulent restating firms than other restating firms. We also find that after restatement, the number of lenders per loan declines and firms pay higher upfront and annual fees. These results are consistent with banks using tighter loan contract terms to overcome risk and information problems arising from financial restatements. © 2008 Elsevier B.V. All rights reserved.
Duke Scholars
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Published In
Journal of Financial Economics
DOI
ISSN
0304-405X
Publication Date
July 1, 2008
Volume
89
Issue
1
Start / End Page
44 / 61
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1606 Political Science
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
Citation
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NLM
Graham, J. R., Li, S., & Qiu, J. (2008). Corporate misreporting and bank loan contracting. Journal of Financial Economics, 89(1), 44–61. https://doi.org/10.1016/j.jfineco.2007.08.005
Graham, J. R., S. Li, and J. Qiu. “Corporate misreporting and bank loan contracting.” Journal of Financial Economics 89, no. 1 (July 1, 2008): 44–61. https://doi.org/10.1016/j.jfineco.2007.08.005.
Graham JR, Li S, Qiu J. Corporate misreporting and bank loan contracting. Journal of Financial Economics. 2008 Jul 1;89(1):44–61.
Graham, J. R., et al. “Corporate misreporting and bank loan contracting.” Journal of Financial Economics, vol. 89, no. 1, July 2008, pp. 44–61. Scopus, doi:10.1016/j.jfineco.2007.08.005.
Graham JR, Li S, Qiu J. Corporate misreporting and bank loan contracting. Journal of Financial Economics. 2008 Jul 1;89(1):44–61.
Published In
Journal of Financial Economics
DOI
ISSN
0304-405X
Publication Date
July 1, 2008
Volume
89
Issue
1
Start / End Page
44 / 61
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1606 Political Science
- 1502 Banking, Finance and Investment
- 1402 Applied Economics