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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Managerial effect or firm effect: Evidence from the private debt market, Financial Review (2019). Francis,Bill B.; Hasan, Iftekhar; Zhu, Yun


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Francis,Bill B.; Hasan, Iftekhar; Zhu, Yun 
Number of authors
Status Online First
Year of publication 2019 
Date 23.04.2019 
Name of article Managerial effect or firm effect: Evidence from the private debt market 
Name of journal Financial Review
Abstract This paper provides evidence that the managerial effect is a key determinant of firms’ cost of capital, in the context of private debt contracting. Applying the novel empirical method developed by an earlier study to a large sample that tracks the job movement of top managers, we find that the managerial effect is a critical and significant factor that explains a large part of the variation in loan contract terms more accurately than firm fixed effects. Additional evidence shows that banks “follow” managers when they change jobs and offer loan contracts with preferential terms to their new firms.
Free text descriptor in Finnish luotot; yritykset; lainat; sopimukset; johtajat; kustannukset; pääoma; rahoitus 
Free text descriptor in English firm fixed effect, loan contract, managerial effect 
ISSN / e-ISSN 0732-8516 
auki Internet addresses
Notes BoF DP 29/2013 
Open Access Not open


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