Ca Nguyen

• Doctor of Philosophy
• Teaching Assistant Professor at University of Arkansas at Fayetteville

Purpose This paper investigates the significant increase in S corporation banks converting to C corporations following the 2017 Tax Cuts and Jobs Act (TCJA) and the shift in motivations behind these conversions. Design/methodology/approach The paper uses bank-level panel data from Federal Deposit Insurance Corporation (FDIC) Call Reports to analyz...

Our study examines the pricing of private placements for issuing firms subject to outstanding loan covenants. Using Private Investments in Public Equity (PIPE) deals from 2001 to 2018, we find that issuing firms restricted by loan covenants offer a discount of 3.9% larger than those without covenants. We corroborate the positive impact of financial...

Compared to C corporation banks, S corporation banks and credit unions are considered tax-exempt institutions, with credit unions receiving the greatest tax benefit. Institutions can choose to pass this benefit onto customers in the form of higher deposit rates and lower loan rates. We test this hypothesis by analyzing a dataset of 11 distinct depo...

We explore the relation between the maturity of new debt issues and firms’ choice between bank loans and public bonds. We use borrowing firms’ asset maturity and effective tax rates to instrument for the debt maturity, and bank competition and bank liquidity in the borrowers’ state to instrument for the debt choice. The analysis provides evidence o...

In this article, I investigate whether a firm’s decision to adopt an amortizing payment schedule affects its cost of bank loans. Focusing on US syndicated loans from 1991 to 2018, I find that amortized loans on average have spreads that are 46 basis points lower than bullet unamortized loan facilities. This discount represents a decrease of $1.66 m...

Purpose This study has two primary objectives. First, it analyzes the information content of confidentiality strictness in corporate loan credit agreements. Second, it examines how confidentiality strictness impacts covenant design, lending syndicate structure and loan pricing. Design/methodology/approach Using a sample of 6,327 loan credit agreem...

We examine whether the presence of loan covenants leads firms to choose either asset or equity acquisitions. Asset acquisitions involve the selective purchase of a target company's assets, and equity acquisitions involve acquisitions of common stocks. We document that firms with loan covenants are more likely to engage in asset acquisitions as oppo...

We examine the probability of exit for different types of investors in the syndicated loan market, as well as how the entry and exit of different types of investors is associated with changes in loan characteristics. Nonbanks, particularly CLOs, closed-end funds, and mutual funds, are more likely than bank lenders to exit the syndicate rather than...