| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 88 === GRADUATE INSTITUTE OF BUSINESS ADMINISTRATION
NATIONAL TAIWAN UNIVERSITY
NAME: JACK J.L.CHOW MONTH/YEAR: JAN/2000
ADVISER: DR.CHI-CHUN LIU
TOPIC: AN EMPIRICAL STUDY ON FACTORS AFFECTING THE SPREADS OF LOAN RATES FOR BANK MEDIUM AND LONG-TERM LOANS
ABSTRACT
Medium and long-term loan interest income share a large portion of bank’s revenues. The factors influencing the spread of the medium and long-term loans are crucial to both banks and enterprises. In theory, the terms of bank loan depend on the credit ratings (or risk) of firms. Prior literature has shown that published financial statements provide relevant information to users in assessing the amount and uncertainty of future cash flows. Therefore, ordinary least square regressions and simultaneous equations are employed to investigate the interrelationship between major corporate financial/credit variables and terms of bank loans. The empirical results are summarized as follows. Loan spreads are negatively associated with loan period, loan covenants, listed company, equity, current ratio, debt-equity ratio and net income of the enterprise. However, loan amount, collateral, guarantor and sales are positively correlated with the loan spreads. In addition, loans for working capital, compared with loans for capital expenditure, have lower spreads. Finally, specific industry characteristics does play a significant role in the determination of bank loan spreads.
KEY WORDS：loan rate, spread
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