This paper provides empirical evidence on the economic value of services provided by independent auditors analyzing whether auditor association leads to reduced interest rates revolving credit agreements. Using multivariate regressions, we analyze relation between bank loans small, private firms and degree with financial statements lender,

Abstract In a sample of bank loans to small firms we find positive relation between the bank's monitoring effort and loan's interest rate. We also observe an inverse closeness banking relationships rates. Further, see that banks less frequently monitor with whom they have closer relationships. conclude are valuable because can significantly reduce their costs capital by establishing maintaining close ties particular bank. As successfully complete loan transactions banks, them and,...

Abstract This study evaluates the limitations of impact factors in assessing journal quality and explores competitive dynamics publishing top‐tier journals across Accounting, Finance, Management, Marketing. We document notable cross‐disciplinary variations that challenge effectiveness factors. Our findings suggest expanding lists within business disciplines by adding high‐impact can change competitiveness publications may lead to imbalances promotion tenure (P&T) decisions. contributes...

Purpose This study aims to determine whether implementation of the Consumer Financial Protection Bureau’s (CFPB) rule will achieve goal providing data for preliminary analysis banks compliance with fair lending regulations. Design/methodology/approach Empirical CFPB’s Dodd–Frank Section 1071. Findings The available under suggest that provide less access minority borrowers, which would be a violation authors show addition simple credit risk variable shows community borrowers loans. Research...

ABSTRACT We analyze the impact of United Kingdom's “Growth Plan” announcement on European Money Market Funds (MMFs). EU MMF regulations allow fixed net asset value (NAV) with liquidity fees and redemption gates floating NAV without restrictions. The new are designed to make MMFs more resilient under financial market stress. find that Pounds denominated and/or UK‐domicile experience fund outflows following announcement. Our results suggest prompted investors move quickly in response stress...

Musto (1997) identifies a turn‐of‐the‐year effect in the commercial paper market and offers risk‐shifting window dressing as an explanation. We revisit this with different methods find strong evidence rejecting hypothesis. extend our analysis to other private‐issue money instruments similar results. further corroborating 1‐month T‐bill aggregate demand deposit data. Our results are consistent year‐end preferred habitat for liquidity associated cash flow obligations.

Empirical studies usually measure the value of debt based on book rather than market value, even though underlying theory is almost always values. This paper documents how using to can distoret debt-equity rations and cost capital calculations.

We are the first to examine how intraday changes in retail investor attention, measured by hourly Google searches, affect trading activity and informativeness of trades. High levels search followed next hour more intensive all stocks. The increased is initiated investors as evidenced reduced size new orders. After googling a company, do not become informed traditional sense; rather, they act noise traders, who mistake for information, their orders picked off truly traders.

The intraday literature suggests that returns, variances, and volume form an reverse‐J pattern. Two competing theories explain the observed patterns: private information about future security prices trading stoppages. Federal funds market allows a unique opportunity to study causes of patterns because common most markets does not play role in setting prices. We find variance while accounting for generalized autoregressive conditional heteroskedasticity (GARCH) model effects. Our results...

Abstract The two main explanations for the crisis in commercial paper (CP) market are credit concerns and liquidity issues. CP is not homogeneous terms of quality, maturities types We find that lower credit‐quality suffered more during crisis. Additionally, we little evidence Federal Reserve (Fed) facilities reduced impact crisis, but when Fed became a lender market, pressures were dramatically reduced. conclude money markets related to increases risk. Liquidity secondary issue.

We use an E-GARCH model to estimate the wealth effects of Federal Reserve lending during financial crisis Investment banks (I-Banks), “Too Big Fail” (TBTF) banks, and “traditional” commercial banks. Borrowing from Term Auction Facility program has negative for all I-banks in particular. also find that market view liquidity programs changed across sample sub-periods. I-Bank TBTF bank borrowing discount window is initially viewed positively, however continued was generally (though not...

Abstract First‐time minority borrowers often receive less desirable outcomes than first‐time White borrowers. Relationship lenders, who use both hard information and soft (community) about new borrowers, can gain insights into a borrower's creditworthiness even without an existing bank–borrower relationship provide more loan opportunities for transactional lenders. Our results show that borrowing from lender reduces lending outcome discrepancies between not only in acceptance rates but also...

This paper addresses whether Federal Reserve Board accounting requirements are sufficiently pervasive to create regularities in government overnight repurchase agreement (repo) rates. US bank settlement regulations allow repos as substitutes for (Fed) funds. We find that exhibit rate changes and variance consistent with identified the Fed funds market, which have been shown result directly from policies governing process. Thus, we conclude repo rates influenced a similar manner by regulatory...

We examine the industry effect hypothesis for leveraged buyouts that suggests will be concentrated in low-growth industries produce free cash flow. Past studies of buyout phenomenon have not examined validity hypothesis. By testing an effect, we hope to further research concerning motivations why occur. The findings this paper general do support find only spurious correlation between and industries. Based on these results, conclude firm specific factors motivate buyouts.

Abstract We empirically examine Parkinson's range‐based volatility estimate in the federal funds market, which is unique because institutional regulations create a predictable pattern interday volatility. find that estimates and standard deviations produce expected pattern. also at trading pressure points where microstructure noise should be greatest, are less than deviations. Thus, we support argument remove upward bias created by noise. Parkinson method most efficient measure among set of...