Research Grant to Explore Bank Deposits

Wednesday, 18 July 2018

Investigating oil and gas company deposits following 2013 shale boom

The Newcastle Business School’s Prof Abul Shamsuddin and Dr Van Vu along with Dr Huu Duong from Monash University have been awarded a research grant of $5000 from Accounting and Finance Association of Australian and New Zealand (AFAANZ) to study the effect of an unexpected increase in bank deposits on bank lending activities to corporate borrowers.

They will investigate the effect of the influx of deposits from oil and gas companies, following the shale boom in 2003, on (1) the amount of credit available to corporate borrowers, (2) the cost of borrowing and (3) bank monitoring. Using the shale boom in 2003 as an exogenous shock, they will employ the difference-in-difference approach to compare the features of bank loan contracts initiated by “affected” banks and “unaffected” banks, before and after 2003.


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