Private placements of equity and accessibility of bank loans

• Published in: PloS one Vol. 18; no. 3; p. e0281510
• Main Authors: Song, Xin, Liu, Chao, Ding, Zijie, Huang, Chenchen, Zhang, Qiongyao
• Format: Journal Article
• Language: English
• Published: United States Public Library of Science 15.03.2023; Public Library of Science (PLoS)
• Subjects: Asymmetry; Bank loans; Banks (Finance); Biology and Life Sciences; Capital markets; Credit policy; Debt financing; Decision making; Discount rates; Earnings management; Engineering and Technology; Equity financing; Financial markets; Financial services industry; Government business enterprises; Hypotheses; Initial public offerings; Institutional investments; Loans; Management; Placement; Private placement; Private placements (Securities); Research and Analysis Methods; Securities markets; Services; Signaling; Social Sciences; Stock exchanges; Stockholders; United States; China

This study investigates the changes in quantity and cost of bank loans after a private placement of common stocks by A-share listed companies in China from 2011 to 2021. This research is derived from the signaling theory and is based on a difference-in-difference design. Through propensity score mat...