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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Social Capital and Debt Contracting: Evidence from Bank Loans and Public Bonds, Journal of Financial and Quantitative Analysis 3; June (2017). Hasan, Iftekhar; Hoi, Chun Keung; Wu, Qiang; Zhang, Hao


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Hasan, Iftekhar; Hoi, Chun Keung; Wu, Qiang; Zhang, Hao 
Number of authors
Status Published
Year of publication 2017 
Date 03.05.2017 
Name of article Social Capital and Debt Contracting: Evidence from Bank Loans and Public Bonds 
Name of journal Journal of Financial and Quantitative Analysis
Volume of issue 52 
Number of issue 3; June 
Pages 1017-1047 
Abstract
We find that firms headquartered in U.S. counties with higher levels of social capital incur lower bank loan spreads. This finding is robust to using organ donation as an alternative social capital measure and incremental to the effects of religiosity, corporate social responsibility, and tax avoidance. We identify the causal relation using companies with a social-capital-changing headquarters relocation. We also find that high-social-capital firms face loosened nonprice loan terms, incur lower at-issue bond spreads, and prefer public bonds over bank loans. We conclude that debt holders perceive social capital as providing environmental pressure that constrains opportunistic firm behaviors in debt contracting.
Free text descriptor in Finnish pankkitoiminta; luotot; joukkovelkakirjat; sosiaalinen pääoma; yritykset; Yhdysvallat; pääkonttorit; sijainti; korot; kustannukset; pankkilainan kustannukset 
ISSN / e-ISSN 0022-1090 
auki Internet addresses
Additional information Published online: 03 May 2017
Notes BoF DP 21/2015 


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