Corporate globalization and bank lending

• 成果类型: Article
• 署名作者: Li, Shujing; Qiu, Jiaping; Wan, Chi
• 署名单位: McMaster University; Carleton University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2011.29
• 发表日期: 2011
• 页码: 1016-1042
• 关键词: corporate globalization; Bank lending; loans; Cost of debt

摘要

This paper investigates the effect of corporate globalization on bank loan contracts, as reflected in both price and non-price loan terms. We show that globally diversified firms receive more favorable valuation from creditors than domestic firms do. Specifically, we find strong evidence that global firms are charged lower loan rates, and are spared the more restrictive non-price contractual terms such as short maturity and collateral requirements. Our results are robust to various extensions, including controlling for firms' endogenous choice of globalization, recognizing the joint determination of loan terms, and using alternative measures of global diversification. Our study contributes to the international business literature as the first comprehensive investigation of how global diversification affects bank lending. Journal of International Business Studies (2011) 42, 1016-1042. doi:10.1057/jibs.2011.29