 The relevance of owner-manager signals and risk proxies to the pricing of bank loansAccounting and Business Research, 1999, vol. 30, issue 1, 57-72 Abstract: This exploratory study, using a sample of 115 new bank loans to small owner-managed firms, demonstrates that a simple categorical pricing model can explain a substantial part of the variation in interest rate premia. It appears that loan term and size interact (in a categorical schema) in their association with interest rate premia. It is suggested that this is more likely a product of co-determination rather than causation. There appear to be significant categorical pricing effects attributable to human capital, industry, and collateral effects. The role of collateral remains ambiguous, although it appears that source matters as much as form. Although further testing of the model is warranted, the results generally indicate that a simple categorical model may be an appropriate representation of loan pricing for small firms and that this can be used to test the value to borrowers of investing in quality signals and information cues. Date: 1999 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:acctbr:v:30:y:1999:i:1:p:57-72 Ordering information: This journal article can be ordered from DOI: 10.1080/00014788.1999.9728924 Access Statistics for this article Accounting and Business Research is currently edited by Vivien Beattie More articles in Accounting and Business Research from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.