IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v62y2024ipbs1544612324002058.html
   My bibliography  Save this article

Does managerial ability affect bank loan pricing?

Author

Listed:
  • Tang, Yajun
  • Wang, Li
  • Shu, Haicheng
  • Li, Tianci

Abstract

This research reveals that the competence of managers significantly shapes bank loan decisions, leading to favorable terms, including lower loan interest rates, for enterprises helmed by capable leaders. Mechanism tests illustrate that the impact of managerial capabilities on bank loan interest rates is achieved by mitigating corporate risk, enhancing the quality of corporate information, and mitigating agency conflicts. Further exploration indicates that the influence of managerial capabilities on reducing loan interest rates is more prominent in the context of private enterprises, those without industrial policy support, and businesses navigating environments characterized by heightened banking competition. This study contributes to the existing literature on the nexus between managerial capabilities and loan interest rates.

Suggested Citation

  • Tang, Yajun & Wang, Li & Shu, Haicheng & Li, Tianci, 2024. "Does managerial ability affect bank loan pricing?," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002058
    DOI: 10.1016/j.frl.2024.105175
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324002058
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105175?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002058. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.