News Column

Researchers at College of William and Mary Release New Data on Corporate Finance

May 24, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Data detailed on Corporate Finance have been presented. According to news reporting originating in Williamsburg, Virginia, by VerticalNews editors, the research stated, "In this study I empirically examine U.S. publicly traded firms to determine the impact of banking relationships on the future of financially distressed firms. Results demonstrate that obtaining a relationship-backed loan in the six months prior to distress identification significantly increases the probability of future firm emergence from distress."

The news reporters obtained a quote from the research from the College of William and Mary, "However, this effect decreases as the severity of firm distress increases. These results are robust to variations in banking relationship measures and to addressing endogeneity."

According to the news reporters, the research concluded: "This study provides evidence consistent with the value of lending relationships stemming from the ease of transmission of 'soft' information within the lender's organization."

For more information on this research see: The effect of banking relationships on the future of financially distressed firms. Journal of Corporate Finance, 2014;25():403-418. Journal of Corporate Finance can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Corporate Finance - www.elsevier.com/wps/product/cws_home/524467)

Our news correspondents report that additional information may be obtained by contacting C.M. Rosenfeld, College of William & Mary, Mason Sch Business, Williamsburg, VA 23187, United States.

Keywords for this news article include: Virginia, Williamsburg, United States, Corporate Finance, North and Central America

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Source: Investment Weekly News