Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/88879
DC FieldValueLanguage
dc.contributorSchool of Accounting and Financeen_US
dc.creatorFrancis, Ben_US
dc.creatorHasan, Ien_US
dc.creatorLiu, Len_US
dc.creatorWu, Qen_US
dc.creatorZhao, Yen_US
dc.date.accessioned2021-01-06T03:58:16Z-
dc.date.available2021-01-06T03:58:16Z-
dc.identifier.issn0929-1199en_US
dc.identifier.urihttp://hdl.handle.net/10397/88879-
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.subjectAnalysts’ career concernsen_US
dc.subjectCost of bank loansen_US
dc.subjectFirm risken_US
dc.subjectNatural experimenten_US
dc.titleFinancial analysts' career concerns and the cost of private debten_US
dc.typeJournal/Magazine Articleen_US
dc.identifier.volume67en_US
dc.identifier.doi10.1016/j.jcorpfin.2020.101868en_US
dcterms.abstractCareer-concerned analysts are averse to firm risk. Not only does higher firm risk require more effort to analyze the firm, thus constraining analysts' ability to earn more remuneration through covering more firms, but it also jeopardizes their research quality and career advancement. As such, career concerns incentivize analysts to pressure firms to undertake risk-management activities, thus leading to a lower cost of debt. Consistent with our hypothesis, we find a negative association between analyst career concerns and bank loan spreads. In addition, our mediation analysis suggests that this association is achieved through the channel of reducing firm risk. Additional tests suggest that the effect of analyst career concerns on loan spreads is more pronounced for firms with higher analyst coverage. Our study is the first to identify the demand for risk management as a key channel through which analysts help reduce the cost of debt.en_US
dcterms.accessRightsembargoed accessen_US
dcterms.bibliographicCitationJournal of corporate finance, Apr. 2021, v. 67, 101868en_US
dcterms.isPartOfJournal of corporate financeen_US
dcterms.issued2021-04-
dc.description.validate202101 bcrcen_US
dc.description.oaNot applicableen_US
dc.identifier.FolderNumbera0533-n01-
dc.description.pubStatusPublisheden_US
dc.date.embargo2022.04.30en_US
Appears in Collections:Journal/Magazine Article
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