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Essays On Bank Loans, Deposit Insurance, And Deregulation, Herman Saheruddin
Essays On Bank Loans, Deposit Insurance, And Deregulation, Herman Saheruddin
Theses and Dissertations
In my first essay, using a novel dataset that merges the Dealscan database and 8-Ks between 1994-2014, I find that on average, only about 31% of bank loans are announced by firms. Among those loans announced, about 60% are cleanly announced and 40% are announced together with other events. The three-day Cumulative Abnormal Stock Return (CAR) following a loan announcement is positive and both statistically and economically significant, which on average about +39 b.p., in line with the theory of bank loan specialness. This finding is mainly driven by bank-dependent firms. Next, I find significant evidence of sample selection bias …