Peer Firms Effect on Bank Lending Behavior

• Main Authors: Chia-Chun Lu, 呂佳純
• Other Authors: Sheng-Yung Yang
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/58314013035513083207

碩士 === 國立中興大學 === 財務金融學系所 === 104 === This study is to explore peer effect of loan contracts in financial intermediaries. Using a sample of Taiwan listed financial institutions from 1995 to 2014, the empirical evidence supports the peer effects of fixed-rate loan contract, regardless of the banks size or profitability. Specifically, the fact that current loan rate is determined by previous rate is prevalent around many financial institutions. In addition, using subsamples with different bank size and profitability, peer effects are also supported. Moreover, the coefficient of determination is particularly higher for the effects of smaller-sized banks on larger-sized banks as the cost of capital of small banks is higher, causing more big banks consider the conservative loan policy of small banks.