Choices in financing is an important issue when firms need to leverage. With the giant capital concerned, including the capital structure, investment decision-making, and dividend policy etc., it plays a crucial role for a firm's future. Among the foreign literatures, unlike equity offerings or public debt offerings, bank loan financing elicits a significant positive stock price reaction. The lengthy foreign literature on firm financing decisions relies (in parts) on this finding to characterize bank loans as ¡§unique¡¨ or ¡§special¡¨ forms of external finance. During the process of approval for loan, banks will make a great effort on monitoring and verifying the quality of firm¡¦s credit capability. The information banks get makes bank loan as an important way to reducing the information asymmetry between firms and the investigators. We further explore the uniqueness of private lending announcement by examining the short-run and the long-run equity performance of bank borrowers. With single-factor model and Fama-French three-factor model, the loan announcement both caused a positive borrowers returns in the short run and long run overall. But there is no cross-sectional effect in the short run. Although the industry variable elicits a significant positive reaction in the long run, it¡¦s only because of the characteristic of the industry, not the loan announcement effects. We conclude that the loan announcement has no influence on the borrowers return

Contrary to other forms of outside financing, the announcement of a bank loan agreement prompts a positive and significant market return. Throughout the literature, bank loans are deemed special and unique due to multiple benefits accruing to bank borrowers. The short-term positive market reaction is however inconsistent with the long-term underperformance of borrowing firms (Billet et al., 2006). We find that unlike shareholders, CEOs gain from the bank loan relation over the long-term. Specifically, we find that bank loan agreement elicits a significant increase in total compensation through an increase in non-performance based compensation components such as salary, bonus and other compensation. We also notice a smaller proportion of pay-at-risk. Additional results indicate that bank loan agreement significantly reduces the probability of CEO turnover in the subsequent year, and no change in the probability of CEO turnover in the three years following the loan. Generally, the results suggest that subsequent to a major bank loan, CEOs seem to gain enough influence to shield their compensation from the firm's underperformance and to secure employment. In particular, this evidence supports the "uniqueness" of bank loan relations.

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This diploma thesis is focused on long term assets financing with focus on most commonly available forms of financing through leasing and bank loan. Objective of this diploma thesis is decision about choosing more profitable form of long term assets financing through various methods of decision making.

In chapter 1, I provide evidence against the claim in the conventional literature on corporate diversification discount that the diversification effect is homogeneous across the industries. I argue that the responsiveness of consumer demand to the changing economic conditions or the product demand sensitivity is an important characteristic of the industries that should be considered to have a more complete understanding of the issue of underperformance of diversified firms compared to single-segment firms. Differentiating industries based on the measure of product demand sensitivity, I show that the diversification effects are not to be homogeneous across the industries. Much of the value destroying effect from the diversification gets reduced when industry experiences any shock or increase in the sensitivity of demand. It implies a better shock observing capacity of diversified firms and a source of premium that conglomerates can enjoy due to their diversified operations during the periods of the increase of sensitivity of product demand. Our result is robust to difference specification and difference measure of sensitivity. In chapter 2, I include organizational forms as industrial and global diversification, and geographic dispersion in the empirical framework to find out which types of diversification do matter for the cost of bank loans. I find that firms which are only globally diversified, neither industrially diversified nor geographically dispersed, experience higher cost of bank loans. The other types of firms incurring higher cost of bank debt are the firms which are only geographically dispersed, and the firms which are diversified in all three ways with the combination of geographic, global, and industrial diversification. Examining the effects of organizational forms on the non-price loan terms, I observe that covenant restrictions are generally higher for the combination of diversified firms which are either both geographically dispersed and industrially diversified, or geographically dispersed and globally diversified.

Access to financial resources is considered to be the most constraining feature for small and medium enterprises (SMEs). Many researchers describe networking as an essential factor for accessing a bank loan as SMEs seek to access to resources for development. Thus, the objective of this paper is, describe the network impact on accessing a bank loan in Iran and Sweden as well as the similarities and differences in the Iranian and Swedish lending process. Lack of literature in this field was the main reason for choosing one developed and one developing country. Based on the theory which is developed by the author, the impact of networking on accessing a bank loan is examining. Multiple case studies were implemented to gather the necessary information. By interviewing personnel in eight banks in Iran and Sweden and eight SMEs in both countries, this study was conducted. The results reveal that social and official networking could provide easier access to a bank loan in both countries. In addition, only in Sweden would networking with a manager of customer influence the outcome. Further, the results indicate that the principle of the lending process is the same in both countries. The main differences in the lending process are included the interest rate, the number of decision makers and supporting different sectors.

In recent time, GIS technology has been used in banking sector. Geographical  Information System uses to make a better management in various sectors in the real life world. The GIS technology covered how to make a decision, data sourcing, data quality and used them in real time environments. Now days GIS is one of the useful analysis  tool,  where  we  can  implement  our  thinking  based  on  several  real  life  applications. Developed countries have made proper utilization of GIS technology. At present  Bangladesh  need  to  utilizes  GIS  technology  to  develop  in  different  organizational  sectors  such  as  banking,  fleet  management,  emergency  services,  and tourism and government infrastructure. For example, In the banking sector, we can implement this technology to provides high quality of services to the customers within short  time.  Therefore,  GIS  technology  provide  the  proper  support  in  bank  industry  and our thesis title “Usability of GIS in banking sector” will provide an experimental outline  about  the  banking  sector  in  Dhaka,  Bangladesh.  Generally,  it  is  a  demo  version  for  a  banking  sector,  that  would  be  provide  to  identify  their  customers,  the location  of  the  ATM  booths,  evaluate  land  value,  and  find  out  the  shortest  path,  nearest service centre, important building and city information. At present there is no such  kind  of  existing  model  for  banking  sector  in  Bangladesh.  So,  we  identify  the  problem  and  decide  to  implement  our  model.  In  our  proposed  frame  work,  we  used different type of GIS tools such as ArcMap, ArcCatalog, ArcPad, CartaLinx, ArcView etc. To implement this model we needed to digitize Dhaka city base map and input different  type  of  data.  For  the  experiment  part,  we  have  chosen  secondary  data  collection method and theoretical frame work support. We have made our own data model to do this experiment and we have covered maximum area in Dhaka city, where we choose a model area named “Motijheel”. Finally we have discussed the simulation result  according  to  our  framework,  which  provides  user  friendly  information.  Our  thesis paper focuses an integrated approach of GIS based system which increases the bank profitability.

The main objective of these graduation theses is to compare two most common way of external sources of financing of an investment, leasing and bank loan. Real case of an company is trying to find out, how an amendment of the tax act influences individual source of financing and furthermore, if the generality saying that leasing is a advantage to loan is still valid.

The problem with which this study is concerned is that of the income concepts used by bank loan officers in dealing with financial information, as compared to the income concepts used by the accounting profession. A series of twenty different financial situations were designed which required the loan officer to make a decision as to an income concept before he could compute the answer to the questions in income, profit, gain, and change in wealth which were asked for in each situation. The loan officers' answers to each situation were then compared with the accountants' answers, using generally accepted accounting principles. In addition, comparisons were made between the income concepts used by the different classes of loan officers and sixteen environmental factors to determine what influence, if any, these factors might have on the answer given by the bank loan officers. The two purposes of the study were to show that bank loan officers do not calculate net income by the same methods as accountants, and to determine if there are environmental factors which would influence the method the loan officer used to compute his answers.

This thesis makes two main contributions to the literature. The first is to establish the existence of a capital supply channel, in particular a bank lending channel of monetary policy transmission in the UK using a clean measure of bank loan supply. In this study we exploit the revealed debt preferences of debt issuing firms by using the Becker and Ivashina (2014) fixed effects framework to isolate the impact of credit supply. By conditioning the sample on non-financial firms whose debt issuance is observed, we are able to eliminate the effects of credit demand and to isolate a clean measure for bank loan supply. In this thesis, we find that the tendency by unconstrained, non-financial firms to substitute corporate bonds for bank loans at different points of the financial cycle reflects changes in bank loan supply. We also find that the patterns of substitutability are consistent among more granular classifications of heterogeneous debt. Our results reveal that among unconstrained firms, the proportion of new bank loan issuance declines, while the proportions of corporate bonds and program debt issuance tend to increase, when faced with unfavourable credit market conditions. We then create a loan to bond substitution measure based on observed substitution behaviour of unconstrained firms. We find that this measure explains the out of sample bank loan issuance behaviour of constrained firms. As a result we conclude that the measure is able to cleanly capture changes in bank loan supply. We extend the study to examine the impact of bank loan supply on the financing, hiring and investment decisions of UK non-financial corporations. We find that bank loan supply disruptions significantly and disproportionately affect the hiring and inventory investment decisions of bank dependent firms relative to those of non-bank dependent firms. The propensity to invest or hire among bank dependent UK non-financial firms declines relative to non-bank dependent firms when bank loan supply deteriorates. Moreover, the fixed investment decisions of non-bank dependent firms tend to decline following adverse bank loan supply shocks. These results confirm the existence of a bank lending channel among UK non-financial firms, and the findings are in line with the narrow credit view of monetary policy transmission. Our second central contribution is to analyse the impact of orthogonal QE shocks, credit supply shocks, credit demand shocks, and monetary policy shocks on the aggregate debt issuance behaviour of UK non-financial firms. Using structural vector error correction models (SVECM), we show that QE shocks increase corporate bond issuance and compress term spreads, but have no effect on the policy rate. Moreover, we observe that unexpected increases in the monetary policy rate lead to a decline in corporate bonds in the short term. While credit supply shocks move aggregate bank lending and aggregate corporate bond issuance in the same direction, corporate bond issuance responds with a lag to fluctuation in credit supply. This implies that adverse credit supply shocks may produce amplified negative effects on capital supply as both corporate bonds and bank loan decline. We also establish a counterfactual for corporate bonds and bank loan issues based on our structural model. We find that the QE policies result in the Bank of England averting a decline in corporate bond issuance of between 3% and 10% during the QE period. Our findings in this thesis point towards the existence of a portfolio balance channel of QE that operates in the UK corporate bond markets during the QE period.