Corporate boards and bank loan contracting

Research, Preprint, Article Dutch; Flemish OPEN
Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang;
  • Publisher: Helsinki: Bank of Finland
  • Subject: corporate governance; corporate boards; loan contract terms | G21 | G34
    • jel: jel:G34 | jel:G21
      ddc: ddc:330

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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