Preprint
The Effect of Organization Capital on the Cost of Bank Loans
Abstract
We find that organization capital is negatively related to the cost of bank loans. This finding is robust to additional analyses including those that address omitted variable bias and reverse causality. In addition, we find that organization capital reduces all-in-spread-undrawn. When we decompose the bank loan cost, we find that organization capital increases facility fees due to its risk-engendering characteristics. Finally, we find that …
Authors
Danielova AN; Francis B; Teng H; Wu Q
Publication date
January 1, 2022
DOI
10.2139/ssrn.4057707
Preprint server
SSRN Electronic Journal