This is a past event
The seminar will be held via Teams on October 23rd from 3pm - 4:15pm (contact: bs-research@abdn.ac.uk for link).
Join Dr Zhehao Jia, a Lecturer (Assistant Professor) in Finance at the University of Edinburgh.
Abstract:
This study investigates the relationship between the use of asset-backed securitization (ABS) and corporate risk-taking. Utilizing hand-collected ABS data from 10-K filings, we provide robust evidence that firms with ABS borrowings exhibit more risk-taking, especially firms with larger ABS borrowing capacity and lower ABS credit consumption. Furthermore, our analysis suggests that the positive relationship between ABS borrowings and risk-taking is more pronounced for firms with less financial constraints, more liquidity constraints, smaller firm size, more board gender diversity, and female CEOs. Our findings support the theoretical view that low costs of capital, high asset liquidity, and good investment opportunities are associated with greater corporate risk-taking. Overall, our findings have important implications for practitioners and policymakers by demonstrating the potential benefits of ABS usage for non-financial firms.
- Speaker
- Dr Zhehao Jia
- Hosted by
- University of Aberdeen Business School
- Contact
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No booking required.