Journal of Financial Economics Vol. 16 No. 1 1986
The effect of the Bankruptcy Reform Act of 1978 on small business loan pricing
Abstract
The Bankruptcy Reform Act of 1978 contains several provisions that can affect the cost of producing loans for financial intermediaries. In a competitive lending market the additional monitoring and expected foreclosure costs imposed by the change in the bankruptcy law should be passed on to the borrower. Using survey data from a sample of small business loans from commercial banks, evidence is presented that the enactment of the new law resulted in higher contract rates of interest.
- DOI
- 10.1016/0304-405x(86)90045-0
- Volume
- 16
- Issue
- 1
- Pages
- 119-140
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref