Local bankruptcy and geographic contagion in the bank loan market Addoum, Jawad M., Kumar, Alok, Le, Nhan and Niessen-Ruenzi, Alexandra 2020, Local bankruptcy and geographic contagion in the bank loan market, Review of Finance, vol. 24, no. 5, pp. 997-1037, doi: 10.1093/rof/rfz023. Attached Files Name Description MIMEType Size Downloads Title Local bankruptcy and geographic contagion in the bank loan market Author(s) Addoum, Jawad M. Kumar, Alok Le, Nhan Niessen-Ruenzi, Alexandra Journal name Review of Finance Volume number 24 Issue number 5 Start page 997 End page 1037 Total pages 41 Publisher Oxford University Press (OUP) Place of publication Oxford, Eng. Publication date 2020-09-01 ISSN 1572-3097 1573-692X Keyword(s) corporate bankruptcy geographic contagion bank loans Summary We examine whether corporate bankruptcies influence bank loan characteristics of geographically proximate firms. Controlling for industry contagion and local economic conditions, firms headquartered near a bankruptcy event experience a 7 basis point increase in loan spreads. The effect is transitory and cannot be fully explained by local correlated information or lenders’ financial health. Instead, the effect is more pronounced for informationally opaque bankruptcies and borrowers, and weakened among loans with relationship lenders and lenders with significant local presence. Language eng DOI 10.1093/rof/rfz023 Indigenous content off Field of Research 1501 Accounting, Auditing and Accountability 1502 Banking, Finance and Investment HERDC Research category C1.1 Refereed article in a scholarly journal Copyright notice ©2019, The Authors Persistent URL http://hdl.handle.net/10536/DRO/DU:30146277 Document type: Journal Article Collections: Faculty of Business and Law Department of Finance Related Links Link Description Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Tue, 15 Dec 2020, 15:49:14 EST Tue, 15 Dec 2020, 18:32:53 EST Tue, 15 Dec 2020, 18:38:59 EST Wed, 16 Dec 2020, 07:37:14 EST Wed, 16 Dec 2020, 07:42:47 EST Wed, 16 Dec 2020, 15:04:19 EST Thu, 18 Mar 2021, 10:49:34 EST Filtered Full Citation counts:   Cited 0 times in TR Web of Science Cited 0 times in Scopus Search Google Scholar Access Statistics: 48 Abstract Views, 1 File Downloads  -  Detailed Statistics Created: Tue, 15 Dec 2020, 15:49:14 EST

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