Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans
Publication
, Journal Article
Dahiya, S; Puri, M; Saunders, A
Published in: Journal of Business
October 1, 2003
This article examines the information content of the sale announcement of a borrower's loans by its lending bank. We find significant negative stock returns for the borrower on the loan sale announcement, particularly for subpar loan sales, where the bank's information advantage is greatest. Further, a large proportion of these borrowers file for bankruptcy after the loan sale. The evidence supports the hypothesis that the news of a bank loan sale conveys negative certification, which is validated by the subsequent performance of the firms whose loans are sold. We also find that the selling banks are not significantly affected.
Duke Scholars
Published In
Journal of Business
DOI
ISSN
0021-9398
Publication Date
October 1, 2003
Volume
76
Issue
4
Start / End Page
563 / 582
Related Subject Headings
- Finance
Citation
APA
Chicago
ICMJE
MLA
NLM
Dahiya, S., Puri, M., & Saunders, A. (2003). Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans. Journal of Business, 76(4), 563–582. https://doi.org/10.1086/377031
Dahiya, S., M. Puri, and A. Saunders. “Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans.” Journal of Business 76, no. 4 (October 1, 2003): 563–82. https://doi.org/10.1086/377031.
Dahiya S, Puri M, Saunders A. Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans. Journal of Business. 2003 Oct 1;76(4):563–82.
Dahiya, S., et al. “Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans.” Journal of Business, vol. 76, no. 4, Oct. 2003, pp. 563–82. Scopus, doi:10.1086/377031.
Dahiya S, Puri M, Saunders A. Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans. Journal of Business. 2003 Oct 1;76(4):563–582.
Published In
Journal of Business
DOI
ISSN
0021-9398
Publication Date
October 1, 2003
Volume
76
Issue
4
Start / End Page
563 / 582
Related Subject Headings
- Finance