Abstract
This paper examines how the management team of enterprises can build a track record for their enterprises and thereby gain investor recognition. We examine the stock market's reaction to bank loan announcements for a sample of NASDAQ and NYSE listed firms. We classify firms according to their market capitalisation and listed exchange. We find that the stock market reacts more positively to announcements of banks loans from small capitalised firms and from NASDAQ firms. For the whole sample, the abnormal returns are significantly different from zero. We also find that the stock market reacts more positively to loan initiations than to loan renewals.
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