Credit Standard Changes and Future Stock Market Returns
March 24, 2010 - Economic Indicators
Do credit conditions systematically affect stock market behavior? In the March 2010 draft of their paper entitled “Credit Conditions and Expected Stock Returns”, Sudheer Chava, Michael Gallmeyer and Heungju Park investigate whether changes in bank lending standards (net percentage of banks reporting tighter standards for commercial and industrial loans in Federal Reserve Board’s quarterly Senior… Keep Reading