Is unsystematic risk priced in bank loan contracts?

被引：5

作者：

Quijano, Margot ^{[1
]}

机构：

[1] Texas State Univ, McCoy Coll Business Adm, San Marcos, TX 78666 USA

来源：

APPLIED ECONOMICS LETTERS | 2013年 / 20卷 / 13期

关键词：

unsystematic risk; U; S; bank loans; cost of debt; G1; G2; G21; EQUITY; DEBT;

D O I：

10.1080/13504851.2013.799750

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

We demonstrate that a firm's unsystematic risk is positively related to its cost of bank debt. A borrower's unsystematic risk needs to be costly monitored by the lender and some of this cost is included in the bank contract. A one SD increase in unsystematic risk results in a 14.0-19.5% increase in the cost of the loan, or 24-34 basis points for the median loan. Our results complement recent literature about the relevance of unsystematic risk and its effect on the cost of capital of corporations.

引用

页码：1233 / 1237

页数：5

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