Titre
A Note on Capital Adequacy and the Information Content of Term Loans and Lines of Credit
Type
article
Institution
Externe
Périodique
Auteur(s)
Andre, P.
Auteure/Auteur
Mathieu, R.
Auteure/Auteur
Zhang, P.
Auteure/Auteur
Liens vers les personnes
ISSN
0378-4266
Statut éditorial
Publié
Date de publication
2001-02
Volume
25
Numéro
2
Première page
431
Dernière page/numéro d’article
444
Peer-reviewed
Oui
Langue
anglais
Résumé
This study examines the information content conveyed by the disclosure of credit agreements in a Canadian setting. We argue that the introduction of the 1988-capital adequacy requirements lead banks to reduce their level of commitment at the issuance of lines of credit to avoid their inclusion in the calculation of the capital ratio. As a result, after 1988, the disclosure of lines of credit is expected to be less informative than the disclosure of term loans since banks may exert less effort to screen and monitor firms. Our results are consistent with the argument that the difference between the market reactions at the disclosure of term loans and lines of credit is significant after 1988. We also provide evidence that firm size and concentration of borrowing affect the market reaction at the disclosure of bank credit agreements.
PID Serval
serval:BIB_59E8B1B5076F
Date de création
2016-04-29T16:17:22.173Z
Date de création dans IRIS
2025-05-20T18:37:28Z