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Bank Borrowers and Loan Sales: New Evidence on the Uniqueness of Bank Loans
2001
Social Science Research Network
This paper examines the information content of the announcement of the sale of a borrower's loan by its bank. A large body of research has documented the positive impact on a firm's stock price around the announcement of formation and renewal of bank lending relationships. In light of these findings it would seem natural that when a bank chooses to sell off its loans, the stock returns of the borrower would be adversely affected. Our paper is the first study to test this hypothesis. We find
doi:10.2139/ssrn.287094
fatcat:xip7na3nuzdh3nd2uxwx462wb4