Corporate boards and bank loan contracting

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Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang;
  • Subject: corporate governance; corporate boards; loan contract terms
    • jel: jel:G21 | jel:G34

We investigate the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and nonprice loan terms (e.g., interest rates, collateral, covenants, and performance-pricing provisions) are more favorable, and sy... View more
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