Product market relationships and cost of bank loans : evidence from strategic alliances

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dc.contributor Bank of Finland
dc.contributor.author Fang, Yiwei
dc.contributor.author Francis, Bill
dc.contributor.author Hasan, Iftekhar
dc.contributor.author Wang, Haizhi
dc.date.accessioned 2014-09-22T07:58:52Z
dc.date.available 2014-09-22T07:58:52Z
dc.date.issued 2011
dc.identifier.isbn 978-952-462-663-7
dc.identifier.issn 1456-6184
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/7787
dc.description.abstract This paper examines the effects of strategic alliances on non-financial firms bank loan financing. We construct several measures to capture firms alliance activities using the frequency of alliance activities, the prominence of the alliance partner and the relative networking position in the overall alliance network. We find that firms with active alliance involvement experience a lower cost of debt from banks. We also document that allying with a prestigious partner (ie S&P 500 firms) can provide an endorsement effect and benefit the borrowers by reducing the price of bank loans. Moreover, a borrowing firm positioned at the centre of an alliance network enjoys a lower cost of bank loans. Finally, we find that borrowing firms with alliance experience are less likely to use collateral and covenants in their loan contracts.
dc.format.extent 42 s.
dc.language.iso eng
dc.relation.ispartofseries Bank of Finland Research Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject yritykset
dc.subject strategiat
dc.subject rahoitus
dc.subject yhteistyö
dc.subject luotot
dc.subject kustannukset
dc.subject pankkitoiminta
dc.subject SP
dc.subject RP
dc.subject liittoumat
dc.title Product market relationships and cost of bank loans : evidence from strategic alliances
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807543
dc.series.name Bank of Finland Research Discussion Papers
dc.series.year 2011
dc.series.number 4/2011
dc.series.sortingnumber 0004
dc.date.publication 1.2.2011
dc.identifier.doi 10.1016/j.jempfin.2012.06.002
dc.description.publication Published in Journal of Empirical Finance, Volume 19, Issue 5, December 2012: 653-674

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