Corporate noncompliance: Do corporate violations affect bank loan contracting?
研究发现，企业违规处罚越重，银行贷款成本越高，合同条款越严格，且这种效应在信息不透明、竞争激烈或监管薄弱的企业中更显著。
We examine the effect of corporate violations on bank loan contracting and document that borrowers with higher corporate violation penalties have higher loan costs. Higher corporate violations are also associated with more restrictive covenants and a higher likelihood of a collateral requirement. The increasing effect of corporate violations on loan costs is concentrated in opaque firms or those subject to more competitive markets or ineffective monitoring. Firms with higher violation penalties have lower future performance and a higher number of future violations. Overall, our results demonstrate that banks factor corporate violations into their lending decisions, thus shedding new light on the economic consequences of corporate violations through the creditors’ lens.