Research@Lincoln
    • Login
     
    View Item 
    •   Research@Lincoln Home
    • Theses and Dissertations
    • Theses and Dissertations with Restricted Access
    • View Item
    •   Research@Lincoln Home
    • Theses and Dissertations
    • Theses and Dissertations with Restricted Access
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Market response to corporate loan announcements in New Zealand

    Koh, Lee Hoon
    Abstract
    The benefits of bank financing from screening and monitoring process have been well documented in studies examining the information content of corporate loan announcements. While most of the previous literature is conducted extensively in the US, this thesis proposes to examine the market reaction to corporate loan announcements in the New Zealand context. Standard event study methodology is employed to test the share price returns of the borrowing firms in response to the corporate announcements. Based on the market model, the average two-day announcement period abnormal returns are found to be positively significant for private bank loans, syndicated loans, project loans, new loans and loans to large borrowing firms. In contrast, public loans, loans from one single lender, renewed loans and loans to small borrowing firms do not show any significant announcement effect. The results thus provide evidence that loan announcements do convey information to the New Zealand capital market. The findings are generally consistent with the existing literature, indicating that the conclusions and theories developed from previous studies are robust in the New Zealand setting. It is also found that lender identity partially explains the market response to loan announcements. Finally, there is evidence that the semi-strong form market efficiency hypothesis holds in the New Zealand financial market.... [Show full abstract]
    Keywords
    firm size; semi-strong form market efficiency; corporate loan announcements; abnormal returns; lender identity; syndication; loan size; loan purpose; loan type
    Date
    2001
    Type
    Thesis
    Access Rights
    Digital thesis can be viewed by current staff and students of Lincoln University only. Print copy available for reading in Lincoln University Library.
    Collections
    • Department of Financial and Business Systems [500]
    • Theses and Dissertations with Restricted Access [2181]
    Share this

    on Twitter on Facebook on LinkedIn on Reddit on Tumblr by Email

    View/Open
    Staff/student login to read
    Metadata
     Expand record
    This service is managed by Learning, Teaching and Library
    • Archive Policy
    • Copyright and Reuse
    • Deposit Guidelines and FAQ
    • Contact Us
     

     

    Browse

    All of Research@LincolnCommunities & CollectionsTitlesAuthorsKeywordsBy Issue DateThis CollectionTitlesAuthorsKeywordsBy Issue Date

    My Account

    LoginRegister

    Statistics

    View Usage Statistics
    This service is managed by Learning, Teaching and Library
    • Archive Policy
    • Copyright and Reuse
    • Deposit Guidelines and FAQ
    • Contact Us