 The market reaction to syndicated loan announcements before and during the COVID-19 pandemic and the role of corporate governanceIoannis Tampakoudis, Athanasios Noulas and Nikolaos Kiosses Research in International Business and Finance, 2022, vol. 60, issue C Abstract: This study examines the wealth effects of syndicated loan announcements before and after the onset of the COVID-19 outbreak. Using a sample of 637 loan announcements by European borrowers, we find significantly higher wealth gains during the pandemic compared to the pre-pandemic period. The results suggest that the certification of multiple lenders loans conveys a positive signal for the borrowers’ creditworthiness during the pandemic-driven economic meltdown. We further show that certain corporate governance mechanisms, such as board size, gender diversity, and CEO duality and compensation, are related differently to borrowers’ excess returns before and after the COVID-19 pandemic. The results are robust to alternative model specifications that control for different estimation models and event windows. They also hold after addressing self-selection bias. Keywords: COVID-19; Syndicated loans; Event study; Europe; Shareholder wealth; Corporate governance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:60:y:2022:i:c:s0275531921002233 DOI: 10.1016/j.ribaf.2021.101602 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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