Bank Monitoring and Environmental Risk

Sebouh Aintablian, Patricia A. Mcgraw and Gordon S. Roberts

Journal of Business Finance & Accounting, 2007, vol. 34, issue 1‐2, 389-401

Abstract: Abstract: Loan announcement effects for 152 Canadian companies are examined to investigate the efficiency of monitoring by banks facing lender environmental liability. Market reaction to the announcement of bank debt to ‘environmental’ firms is more positive and significant than for ‘non‐environmental’ firms and, for firms in industries with a higher likelihood of experiencing spill events, is more positive and significant, reinforcing earlier results that establish a relationship between specific loan/borrower characteristics and announcement period excess returns and providing further evidence on the ‘uniqueness’ of bank loans by demonstrating the superior ability of banks to monitor corporate borrowers exposed to environmental liability.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://doi.org/10.1111/j.1468-5957.2006.00644.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jbfnac:v:34:y:2007:i:1-2:p:389-401

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().