{"title":"The Global Financial Crisis and Stock Market Reaction to Bank Loan Announcements","authors":"Ming-Hua Liu, Che Xu","doi":"10.3868/S070-005-016-0008-1","DOIUrl":null,"url":null,"abstract":"This study investigates how equity investors react to bank loan announcements in China using an event study methodology. By estimating the average Cumulative Abnormal Returns (CARs) over the event period and controlling for the impact of other factors such as borrower, lender and loan characteristics, we find that the overall reaction is negative. However, the results for the two sub-sample periods are different. After the onset of the Global Financial Crisis, the average CARs are no longer statistically different from zero, indicating higher lending standards and improvement in the quality of credit analysis of Chinese banks.","PeriodicalId":54175,"journal":{"name":"Frontiers of Business Research in China","volume":"29 1","pages":"176-219"},"PeriodicalIF":1.3000,"publicationDate":"2016-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Frontiers of Business Research in China","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.3868/S070-005-016-0008-1","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 2
Abstract
This study investigates how equity investors react to bank loan announcements in China using an event study methodology. By estimating the average Cumulative Abnormal Returns (CARs) over the event period and controlling for the impact of other factors such as borrower, lender and loan characteristics, we find that the overall reaction is negative. However, the results for the two sub-sample periods are different. After the onset of the Global Financial Crisis, the average CARs are no longer statistically different from zero, indicating higher lending standards and improvement in the quality of credit analysis of Chinese banks.
期刊介绍：
Frontiers of Business Research in China (FBR) is a double-blind refereed quarterly journal in business research. FBR offers a multidisciplinary forum for academics, practitioners, and policy makers that focuses on business administration, and encourages interdisciplinary studies and interactions between Chinese and international researchers. FBR publishes original academic and practical research articles that extend, test, or build management theories, as well as contributions to business administration practice, either in the Greater China region or beyond. The Journal also publishes related commentaries and case studies. FBR invites submissions of high-quality manuscripts in all areas of business administration, without limitations on research methods. Major areas of interest include, but are not limited to: Accounting, Finance, Human resources, International business, Marketing, Management information systems, Operations management, Organizational behavior, and Strategic management.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
