Three essays in financial accounting
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Authors
Ren, Ning
Issue Date
2015-08
Type
Electronic thesis
Thesis
Thesis
Language
ENG
Keywords
Management
Alternative Title
Abstract
My thesis covers three distinct topics in the area of financial accounting. My first essay, in Chapter 1, examines the competitive effects of initial public offerings (IPO) on industry peers’ bank loan terms. By using 13,075 facility-firm observations from 1989 to 2011, I find that bank loans initiated after the IPO for the industry incumbent firms have significant higher loan spread, higher likelihood of employing performance pricing provisions, and higher commitment fees. I also find that the syndicate loan structure for industry incumbents become more concentrated after successful IPOs in the industry: the number of lenders declines while lead bank share increases. In a series of robustness tests, I show that banks imposing more stringent loan terms on the industry incumbents to reimburse the increased operating risk and adverse selection cost caused by large IPO in the industry.
Description
August 2015
School of Management
School of Management
Full Citation
Publisher
Rensselaer Polytechnic Institute, Troy, NY