The market reaction to borrowing announcements: UK evidence surrounding the global financial crisis

Andrew Marshall; Laura McCann; Patrick McColgan

The market reaction to borrowing announcements: UK evidence surrounding the global financial crisis

Andrew Marshall, Laura McCann, Patrick McColgan

Accounting And Finance

Research output: Contribution to conference › Paper › peer-review

Abstract

We examine the stock market response to announcements of public, bank and non-bank private debt by large UK firms surrounding the global financial crisis of 2008. Prior to the financial crisis, we find positive announcement returns surrounding bank loan announcements. However, abnormal returns on announcement of bank loans have significantly declined since 2008 and are now insignificantly different from zero. Our findings show that it is syndicated bank loans rather than the more traditional bilateral bank loans that drive the positive abnormal returns to bank loans

Original language	English
Publication status	Published - 28 Apr 2015
Event	European Accounting Association Annual Congress - Glasgow, United Kingdom Duration: 28 Apr 2015 → 30 Apr 2015

Conference

Conference	European Accounting Association Annual Congress
Country/Territory	United Kingdom
City	Glasgow
Period	28/04/15 → 30/04/15

Keywords

UK market
market reactions
UK borrowing

Cite this

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title = "The market reaction to borrowing announcements: UK evidence surrounding the global financial crisis",

abstract = "We examine the stock market response to announcements of public, bank and non-bank private debt by large UK firms surrounding the global financial crisis of 2008. Prior to the financial crisis, we find positive announcement returns surrounding bank loan announcements. However, abnormal returns on announcement of bank loans have significantly declined since 2008 and are now insignificantly different from zero. Our findings show that it is syndicated bank loans rather than the more traditional bilateral bank loans that drive the positive abnormal returns to bank loans",

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author = "Andrew Marshall and Laura McCann and Patrick McColgan",

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T1 - The market reaction to borrowing announcements

T2 - European Accounting Association Annual Congress

AU - Marshall, Andrew

AU - McCann, Laura

AU - McColgan, Patrick

PY - 2015/4/28

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N2 - We examine the stock market response to announcements of public, bank and non-bank private debt by large UK firms surrounding the global financial crisis of 2008. Prior to the financial crisis, we find positive announcement returns surrounding bank loan announcements. However, abnormal returns on announcement of bank loans have significantly declined since 2008 and are now insignificantly different from zero. Our findings show that it is syndicated bank loans rather than the more traditional bilateral bank loans that drive the positive abnormal returns to bank loans

AB - We examine the stock market response to announcements of public, bank and non-bank private debt by large UK firms surrounding the global financial crisis of 2008. Prior to the financial crisis, we find positive announcement returns surrounding bank loan announcements. However, abnormal returns on announcement of bank loans have significantly declined since 2008 and are now insignificantly different from zero. Our findings show that it is syndicated bank loans rather than the more traditional bilateral bank loans that drive the positive abnormal returns to bank loans

KW - UK market

KW - market reactions

KW - UK borrowing

M3 - Paper

Y2 - 28 April 2015 through 30 April 2015

ER -

The market reaction to borrowing announcements: UK evidence surrounding the global financial crisis

Abstract

Conference

Keywords

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Cite this