Bank accounting conservatism and bank loan pricing

• Main Authors: Lim, Chu Yeong, Lee, Edward, Kausar, Asad, Walker, Martin
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2014
• Subjects: DRNTU::Business::Finance::Bank management
• Online Access: https://hdl.handle.net/10356/103900; http://hdl.handle.net/10220/20021
• Institution: Nanyang Technological University

This paper studies the effects of bank accounting conservatism on the pricing of syndicated bank loans. We provide evidence that banks timelier in loss recognition charge higher spreads. We go onto consider what happens to the relationship between spreads and timeliness in loss recognition during th...