When Shareholders Cross-Hold Lenders’ Equity: The Effects on Loan Terms

2022 ◽  
Author(s):  
Jing Wang ◽  
Liying Wang
Keyword(s):  
Loan Terms

scholarly journals Testing the Effectiveness of CSR Dimensions for Small Business Entrepreneurs

2020 ◽  
Vol 7 (1) ◽  
pp. 6
Author(s):  
Nor Hadi ◽  
Udin Udin
Keyword(s):  
Corporate Social Responsibility ◽  
Small Business ◽  
Social Responsibility ◽  
Low Cost ◽  
Mining Area ◽  
Production Equipment ◽  
Loan Terms ◽  
The Government ◽  
Contract Implementation ◽  
Corporate Social

This article is intended to empirically test the effectiveness of the Corporate Social Responsibility (CSR) dimension of assistance to Small Business Entrepreneurs (SMEs) under companies’ guidance of Semen Indonesia in Central and East Java. Corporate Social Responsibility (CSR) implementation for Small Business Entrepreneurs (SMEs), besides as a social contract implementation, is also an effort to increase legitimacy. This study is essential to obtain effective and relevant CSR dimensions recommended for the SME empowering program. The study was conducted at SMEs domiciled around the mining area and the cement factory. Out of 250 SMEs, 92 SMEs were involved in this study. The research data was primary, including respondents’ opinions, where the data were taken using survey and interview procedures. Data analysis using statistics was a factorial analysis. The results showed that of the eight programs included in CSR in the field of assistance for empowering SMEs, two were effective for empowering SMEs: (1) low-cost revolving funds and (2) production equipment assistance for SMEs. Meanwhile, six other CSR programs showed ineffectiveness: (1) mentoring, (2) marketing, (3) ease of procedure and relief of loan terms, (4) education and training, (5) accessibility of obtaining loans, and (6) the involvement of parties in the implementation of CSR. It indicated that the six CSR programs were not effective in helping to build image and legitimacy. The results of the research make an important contribution to the government and corporations and show that the construction of CSR programs must give attention to the real conditions and needs of SMEs in order to achieve effectiveness in solving problems by SMEs. Especially for the government, regulations are needed that can systemically encourage companies to implement CSR. This research still has limitations, therefore further research should be developed, especially in the area of empirical testing related to the contextual dimensions of CSR that are relevant to assisted stakeholders. Development-based research should be considered.

scholarly journals The Dollar and Corporate Borrowing Costs

2021 ◽  
Vol 2021 (1312) ◽  
pp. 1-64
Author(s):  
Ralf R. Meisenzahl ◽  
◽  
Friederike Niepmann ◽  
Tim Schmidt-Eisenlohr ◽  
◽  
...  
Keyword(s):  
Standard Deviation ◽  
High Frequency ◽  
Standard Deviation Increase ◽  
Borrowing Costs ◽  
Corporate Borrowing ◽  
Loan Terms ◽  
Syndicated Loan ◽  
Loan Amount

We show that U.S. dollar movements affect syndicated loan terms for U.S. borrowers, even for those without trade exposure. We identify the effect of dollar movements using spread and loan amount adjustments during the syndication process. Using this high-frequency, within loan variation, we find that a one standard deviation increase in the dollar index increases spreads by up to 15 basis points and reduces loan amounts and underpricing by up to 2 percent and 7 basis points, respectively. These effects are concentrated in dollar appreciations. Our results suggest that global factors reflected in the dollar affect U.S. borrowing costs.

Acceptance of terminology sanctioned by the Turkish Language Society

Terminology ◽  
2009 ◽  
Vol 15 (2) ◽  
pp. 145-178 ◽  
Author(s):  
Erkan Karabacak
Keyword(s):  
Language Planning ◽  
Loan Terms ◽  
Turkish Language ◽  
Newspaper Articles

This corpus-based study investigated the levels at which Turkish newspaper writers have accepted economic terms that were made official by the Turkish Language Society (TDK) between the years 1995 and 1998 in its attempt to purge Turkish of European and English economic terms. The study found that writers used loan terms more frequently than the official terms in their newspaper articles. In an additional survey, writers reported a need for planning for the use of economic terms in Turkish. This study contributes to terminology and language planning attempts in Turkey and elsewhere, such as efforts to invent more acceptable terms and to find efficient ways of implementing their use.

The Association Between Bank Credit Terms and Conditions and the Business Cycle in the Euro Area

2019 ◽  
Vol 65 (4) ◽  
pp. 247-256
Author(s):  
Dimitrios Anastasiou ◽  
Konstantinos Drakos
Keyword(s):  
Business Cycle ◽  
Euro Area ◽  
Bank Loan ◽  
Bank Credit ◽  
Monetary Policies ◽  
Policy Makers ◽  
Long Run ◽  
Loan Terms ◽  
Short Run ◽  
The Business Cycle

Abstract We explored the trajectory of bank loan terms and conditions over the business cycle, where the latter was decomposed into its long-run (trend) and short-run (cyclical) components. We found that deterioration of each business cycle component leads to a significant tightening of credit terms and conditions. We found mixed results concerning the symmetry of impacts of the short and long run components. Symmetry was found between the terms and conditions on loans for small vs. large enterprises. Our findings provide very useful information to policy makers and should be taken into consideration when monetary policies are designed.

Does Information Technology Reputation Affect Bank Loan Terms?

2014 ◽  
Author(s):  
Jeong-Bon Kim ◽  
Byron Song ◽  
Theophanis C. Stratopoulos
Keyword(s):  
Information Technology ◽  
Bank Loan ◽  
Loan Terms

Do farm service agency borrowers' double minority labels lead to more unfavorable loan packaging terms?

2020 ◽  
Vol 80 (5) ◽  
pp. 633-646
Author(s):  
Jyotsna Ghimire ◽  
Cesar L. Escalante ◽  
Ramesh Ghimire ◽  
Charles B. Dodson
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Simulation Optimization ◽  
Service Agency ◽  
Institutional Reforms ◽  
Content Type ◽  
Loan Terms ◽  
And Gender ◽  
Farm Service Agency ◽  
Double Minority

PurposeThis study adds a new dimension in the study of racial and gender bias in farm lending. Most previous studies analyzed the separate effects of race and gender attributes on loan approval decisions. The analysis focuses on the stipulation of loan terms (loan amount, interest rate and maturity) among approved farm loan applications. The time period analyzed spans from 2004 until 2014 during which the government has undertaken reforms to improve delivery of loan services to its clientele of minority farmers. Thus, this study's findings could help validate the effectivity of such institutional reforms affecting Farm Service Agency (FSA) lending operations.Design/methodology/approachThis study utilizes a national direct loan origination data from the FSA of the U.S. Department of Agriculture (USDA) collected from 2004 to 2014. The analysis begins by identifying significant differences in cross-tabulations of loan terms among different racial and gender classes. Seemingly unrelated regression (SUR) regression techniques are then applied for a system of equations involving the three loan packaging components. The combined effects of the prescribed loan packaging terms are subsequently analyzed under a simulation-optimization framework.FindingsRegression results validate that indeed, relative to White American borrowers, certain minority borrowers are accommodated with lower loan amounts at higher interest rates and with shorter maturities. However, these decisions seem to be prompted by credit risk management considerations. The most compelling findings include the insignificance of all double minority labeling variables, except for the interest rate equation that even produced favorable results for Hispanic American females. Simulation-optimization results further reinforce that even when one or two unfavorable loan terms are included in the packaging, double minority borrowers end up with better profitability and liquidity positions.Practical implicationsThis study provides a different perspective in dealing with the controversial minority bias in lending by presenting evidence gathered from a government farm lending institution. The USDA-FSA has been sued in numerous occasions by minority borrowers. Since then, however, it has deliberately implemented institutional reforms to rectify previous errors. This study provides empirical evidence strengthening FSA's claim of its intention to improve its delivery of loan services, especially for its socially disadvantaged borrowers with double minority classification.Originality/valueThis study pioneers the analysis of the double minority labeling effect on farm lending decisions. Its contributions to literature are further enhanced by its goal to validate the effectiveness of FSA institutional reforms undertaken since the early 2000s in order to improve credit access of and delivery of credit services to minority farm borrowers, especially those that belong to more than one minority classification.

Loan Terms and Loan Repayment Performance: The Experience with Minority Small Businesses

1979 ◽  
Vol 4 (1) ◽  
pp. 10-21 ◽  
Author(s):  
Albert L. Page ◽  
Scott Cowen ◽  
Martin Cohen
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Structural Characteristics ◽  
Loan Repayment ◽  
Business Loan ◽  
Loan Terms ◽  
Loan Size ◽  
The Relationship ◽  
Size Variable

The purpose of this paper is to report the results of a study which examines the relationship between the structural characteristics of loans to minority small businesses and loan performance. The study represents an extension of research to the analysis of small business loan performance [2, 5, 7, 14]. As such it provides another perspective to understanding the performance of such loans by considering the relationships that exist between loan characteristics and loan performance. In particular, the finding regarding the relationship between the amount of the loan and loan performance provides important additional evidence relevant to a debate in the literature between Edelstein [5, 6] and Bates and Hester [3] about the effect of the loan size variable.

The impact of predatory loan terms on subprime foreclosures: The special case of prepayment penalties and balloon payments

2007 ◽  
Vol 18 (2) ◽  
pp. 311-346 ◽  
Author(s):  
Roberto G. Quercia ◽  
Michael A. Stegman ◽  
Walter R. Davis
Keyword(s):  
Loan Terms ◽  
The Impact ◽  
Special Case
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