Journal article
The Impact of Credit Line Announcements on Stock Prices: Analysis of Stated Reasons and Financial Risk
International review of economics & finance, v 5(3), pp 307-320
01 Jan 1996
Abstract
We examine the valuation effects of credit line agreements for a sample of firms during the period 1979-1989. We test the proposition that the magnitude of the stock price reaction to credit line announcements is dependent upon the firm's financial health or risk and the stated reason for the borrowing. Consistent with previous findings, we report positive valuation effects to credit line announcements. We find, however, that the intensity or strength of the abnormal returns is greater for financially weak firms and for firms requesting borrowing for financial capital expenditures.
Metrics
20 Record Views
3 citations in Scopus
Details
- Title
- The Impact of Credit Line Announcements on Stock Prices: Analysis of Stated Reasons and Financial Risk
- Creators
- Nikos FlorosGeorge Tsetsekos
- Publication Details
- International review of economics & finance, v 5(3), pp 307-320
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Scopus ID
- 2-s2.0-16144367473
- Other Identifier
- 991019173632904721