000195495 001__ 195495
000195495 005__ 20181203023408.0
000195495 0247_ $$2doi$$a10.1093/rfs/hht069
000195495 022__ $$a0893-9454
000195495 02470 $$2ISI$$a000327457900007
000195495 037__ $$aARTICLE
000195495 245__ $$aCan Equity Volatility Explain the Global Loan Pricing Puzzle?
000195495 260__ $$bOxford Univ Press Inc$$c2013$$aCary
000195495 269__ $$a2013
000195495 300__ $$a41
000195495 336__ $$aJournal Articles
000195495 520__ $$aThis paper examines whether unobservable differences in firm volatility are responsible for the global loan pricing puzzle, which is the observation that corporate loan interest rates appear to be lower in Europe than in the United States. We analyze whether equity volatility, an error prone measure of firm volatility, can explain this difference in loan spreads. We show that using equity volatility in OLS regressions will result in biased and inconsistent estimates of the difference in U.S. and European loan spreads. We use instrumental variable methods to identify consistent estimates and find no difference in U.S. and European loan spreads.
000195495 6531_ $$aG10
000195495 6531_ $$aG20
000195495 6531_ $$aG30
000195495 700__ $$aGaul, Lewis
000195495 700__ $$aUysal, Pinar
000195495 773__ $$j26$$tReview Of Financial Studies$$k12$$q3225-3265
000195495 909C0 $$xU11431$$0252269$$pSFI-LL
000195495 909CO $$pCDM$$particle$$ooai:infoscience.tind.io:195495
000195495 937__ $$aEPFL-ARTICLE-195495
000195495 973__ $$rREVIEWED$$sPUBLISHED$$aEPFL
000195495 980__ $$aARTICLE