The DOI matches its Crossref record; 65 of the 65 references it cites were found in a registry or an index.
On Loan Sales, Loan Contracting, and Lending Relationships
Open accessAbstract
This paper examines the secondary market for loan sales, focusing on whether loan contract design can reduce agency problems in loan sales and the benefits and costs to corporate borrowers. We argue that covenants aid loan sales by protecting the loan buyer from potential losses caused by informationally-advantaged borrowers and loan sellers. Using loan-level data, we find that sold loans contain more restrictive covenant packages, particularly when agency problems are more severe. Why do borrowers agree to incur the additional costs associated with loan sales? We show that borrowers whose loans are sold have high leverage ratios, and loan sales increase their access to loans. Also, contrary to concerns that loan sales weaken lending relationships, we find more durable lending relationships when loans are sold.
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Cites
Limited-dependent and qualitative variables in econometrics
Maddala, G. S. (1983) · Cambridge University Press eBooks · doi:10.1017/cbo9780511810176 · Cited by 13,240
ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES*
Merton, R. C. (1974) · The Journal of Finance · doi:10.1111/j.1540-6261.1974.tb03058.x · Cited by 10,581
Financial intermediation and delegated monitoring
Diamond, D. W. (1984) · The Review of Economic Studies · doi:10.2307/2297430 · Cited by 8,476
The Benefits of Lending Relationships: Evidence from Small Business Data
PETERSEN, M. A., & RAJAN, R. G. (1994) · The Journal of Finance · doi:10.1111/j.1540-6261.1994.tb04418.x · Cited by 5,440
Relationship Lending and Lines of Credit in Small Firm Finance
Berger, A. N., & Udell, G. F. (1995) · The Journal of Business · doi:10.1086/296668 · Cited by 3,636
Monitoring and reputation: The choice between bank loans and directly placed debt
Diamond, D. W. (1991) · Journal of Political Economy · doi:10.1086/261775 · Cited by 3,331
Smith, C. W., & Warner, J. B. (1979) · Journal of Financial Economics · doi:10.1016/0304-405x(79)90011-4 · Cited by 2,894
On the Pricing of Corporate Debt: The Risk Structure of Interest Rates
Merton, R. C. (1974) · The Journal of Finance · doi:10.2307/2978814 · Cited by 2,751
Corporate Structure, Liquidity, and Investment: Evidence from Japanese Industrial Groups
Hoshi, T., Kashyap, A., & Scharfstein, D. (1991) · The Quarterly Journal of Economics · doi:10.2307/2937905 · Cited by 2,359
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Cited by
The impact of corporate social responsibility on the cost of bank loans
Goss, A., & Roberts, G. S. (2011) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2010.12.002 · Cited by 2,101
Political Connections and the Cost of Bank Loans
HOUSTON, J. F., JIANG, L., LIN, C., & MA, Y. (2014) · Journal of Accounting Research · doi:10.1111/1475-679x.12038 · Cited by 705
COSTELLO, A. M., & WITTENBERG‐MOERMAN*, R. (2011) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2010.00388.x · Cited by 555
Fintech for the Poor: Financial Intermediation Without Discrimination
Tantri, P. (2021) · Review of Finance · doi:10.1093/rof/rfaa039 · Cited by 94
Gorton, G. (2008) · doi:10.3386/w14398 · Cited by 81
Metadata
- Authors
- Drucker, S., & Puri, M.
- Venue
- Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2008-07-02
- Volume
- 22
- Issue
- 7
- Pages
- 2835-2872
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W3124183409
- Cited by
- 478
- References
- 65
- FWCI
- 53.07
- Type
- journal article
- Language
- en
- Open access
- green
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
