Syndicated Loan Announcements and the Market Value of the Banking Firm

William L Megginson, Annette B Poulsen and Sinkey, Joseph F,

Journal of Money, Credit and Banking, 1995, vol. 27, issue 2, 457-75

Abstract: This paper examines valuation effects on the stocks of fifteen participating money-center banks of 774 announcements of syndicated loans, representing announcements of investment decisions for the lenders. The authors find that announcements of LDC loans in the 1970s, especially those to Latin American borrowers, are associated with negative abnormal returns to the lending banks while announcements of loans to U.S. corporate borrowers in the 1980s, especially those for takover finance, are associated with positive abnormal returns. While a number of testable predictions are consistent with the negative abnormal returns for Latin American loans, they explain response to takeover loans with a return-to-liquidity hypothesis. Copyright 1995 by Ohio State University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819950 ... 0.CO%3B2-D&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:mcb:jmoncb:v:27:y:1995:i:2:p:457-75

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().