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The month-of-the-year effect in corporate lending

Author

Listed:
  • Jérémie Bertrand
  • Aurore Burietz

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Laurent Weill

    (EM Strasbourg - École de Management de Strasbourg = EM Strasbourg Business School)

Abstract
We investigate the existence of calendar effect in corporate lending decisions. We show that the loan amount granted by banks significantly varies across months. We find a positive effect of quarter-end and year-end months on the loan amount. We attribute these effects to trade loading behavior, according to which banks would inflate granted loans at the end of the quarter and the year to hit financial targets.

Suggested Citation

  • Jérémie Bertrand & Aurore Burietz & Laurent Weill, 2021. "The month-of-the-year effect in corporate lending," Post-Print hal-03265765, HAL.
    • Handle: RePEc:hal:journl:hal-03265765
    DOI: 10.1016/j.frl.2021.102014
    Note: View the original document on HAL open archive server: https://hal.science/hal-03265765
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Calendar effect; Corporate loans; Trade loading;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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