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Full-Text Articles in Business

The Effect Of Xbrl And Social Media On Information Asymmetry: Evidence From Bank Loan Contracts, Dazhi Chong Jul 2016

The Effect Of Xbrl And Social Media On Information Asymmetry: Evidence From Bank Loan Contracts, Dazhi Chong

Information Technology & Decision Sciences Theses & Dissertations

This study analyzes how two information technology advancements, the adoption of XBRL (eXtensible Business Reporting Language), and social media, affect bank loan contracting using a sample of 554 US bank loan contracts in 2011. I hypothesize that the adoption of XBRL and social media can enhance information dissemination and mitigate the information asymmetry problem between borrowers and lenders. Consistent with this hypothesize, I find that borrowers that adopt XBRL and/or receive positive social media user opinion in social media enjoy more favorable price and non-price terms of bank loan contracts. Additional analyses indicate that the relations among XBRL adoption, social …


Information Opacity, Credit Risk, And The Design Of Loan Contracts For Private Firms, Lucy Ackert, Rongbing Huang, Gabriel G. Ramirez Nov 2007

Information Opacity, Credit Risk, And The Design Of Loan Contracts For Private Firms, Lucy Ackert, Rongbing Huang, Gabriel G. Ramirez

Faculty Articles

This paper examines the structure and cost of a large sample of bank loans to private firms. Compared to public firms, private firms are more informationally opaque and riskier. The results suggest that the design of a loan to a private firm is significantly different from that to a public firm. Bank loans to private firms are more likely to be by a sole lender, collateralized, and have sweep covenants than loans to public firms. The cost of borrowing is higher for a private firm than for a public firm, even after holding constant firm and loan characteristics.


Valuation Of Closely Held And Untraded Stocks Held As Collateral By Banks In Support Of Loans, Richard Mortensen Linder Apr 1956

Valuation Of Closely Held And Untraded Stocks Held As Collateral By Banks In Support Of Loans, Richard Mortensen Linder

Master's Theses

It is recognized that one of the primary functions of modern day banking is the extension of credit. Properly administered, the fulfillment of this function is, either directly or indirectly, of importance to the general welfare. Properly loaned money is a source of income to the bank, and hence to the stockholders and employees; it enables the retailer to carry his inventory; the wholesaler to purchase and distribute a variety of products; and the manufacturer to produce a needed finished product. Direct loans to individuals are likewise of vital importance for many reasons. Borrowed funds may enable an individual to …