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dc.contributor.supervisor Asem, Ebenezer
dc.contributor.supervisor Shao, Pei
dc.contributor.author Gonzalez Rodriguez, Karen Pamela
dc.contributor.author University of Lethbridge. Dhillon School of Business
dc.date.accessioned 2019-06-06T17:35:26Z
dc.date.available 2019-06-06T17:35:26Z
dc.date.issued 2018
dc.identifier.uri https://hdl.handle.net/10133/5389
dc.description.abstract In this thesis, I examine the secondary loan price reaction to dividend announcements. Using a sample of loans from 254 US firms covering the period between 2000 and 2016, I find that loans are associated with significantly negative abnormal returns around dividend cut announcements, consistent with the information content hypothesis. In contrast, there are no abnormal returns around dividend increase announcements. Further analysis shows that the information content effect of dividend increases is offset by the wealth transfer effect. The results provide evidence that the information content and the wealth redistribution hypotheses are not mutually exclusive, and loan prices react according to the combination of both hypotheses. Additionally, empirical evidence indicates that cash holdings, monitoring incentives, the structure of debt contracts, and covenants can help mitigate the costs arising from agency conflicts. en_US
dc.language.iso en_CA en_US
dc.publisher Lethbridge, Alta. : University of Lethbridge, Dhillon School of Business
dc.relation.ispartofseries Thesis (University of Lethbridge. Dhillon School of Business)
dc.subject dividend changes
dc.subject financial contracting
dc.subject information content
dc.subject secondary loan market
dc.subject wealth redistribution
dc.subject.lcsh Secondary markets
dc.subject.lcsh Dividends
dc.subject.lcsh Bank loans
dc.subject.lcsh Business communication
dc.subject.lcsh Dissertations, Academic
dc.title Bank loan price reaction to dividend announcements: an empirical analysis of the secondary loan market en_US
dc.type Thesis en_US
dc.publisher.faculty Dhillon School of Business en_US
dc.degree.level Masters en_US
dc.proquest.subject 0770 en_US
dc.proquest.subject 0508 en_US
dc.proquestyes Yes en_US
dc.embargo No en_US


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