СтаттяЗовнішня публікація30 червня 2021 р.

Determinants of Corporate Loan Interest Rate: Case of Ukraine

Solomiya ShpakORCID

Анотація

This paper estimates the effect of loan, borrower, and bank characteristics on corporate loan pricing in Ukraine using rich loan-borrower-bank monthly panel data from 2013 and 2020 combined with data from borrowers’ financial statements. Examining an extensive set of fixed effects, we find that larger loans, loans with a shorter maturity period and larger collateral value have lower interest rates even after controlling for borrower characteristics. We also find that larger borrowers, borrowers with more tangible assets, lower indebtedness, and a higher interest coverage ratio who operate in concentrated industries secure lower interest rates. Our findings suggest that it is crucial to take into consideration both loan and borrower characteristics when estimating the effects of banks’ health on the loan interest rate.

Класифікація

Домен

Social Sciences

Галузь

Business, Management and AccountingEconomics, Econometrics and Finance

Підгалузь

AccountingGeneral Economics, Econometrics and FinanceFinance

Тема

Corporate Finance and GovernanceEconomic Issues in Ukraine★Banking stability, regulation, efficiency

Ідентифікатори

DOI: 10.26531/vnbu2021.251.01

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