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Birds of the Same Feather Flock Together? An Analysis of the Distressed Banks and their Clients
Journal of Financial Studies
View Archive Info| Field | Value | |
| Title |
Birds of the Same Feather Flock Together? An Analysis of the Distressed Banks and their Clients
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| Creator |
Chien-An Wang
Hsien-Chang Kuo |
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| Description |
Using the individual loan transaction data, we discuss the cluster effect of the distressed banks and their client firms. Our empirical results show: (1) The performances of the distressed banks and their unhealthy borrowing firms flock together significantly. It implied that a bank cannot perform well without a healthy corporate sector, and the performances of the two sectors cannot theoretically be kept apart. (2) The loan terms for the small and medium-sized enterprises to switch other banks after the distressed event of borrowing banks are stricter. The results mean that the adverse effects from distress in the banking sector pertain to the consequences on firms with more serious information asymmetry particularly. Key words: Cluster effect, The distressed banks, Client firms |
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| Publisher |
Journal of Financial Studies
財務金èžå¸åˆŠ |
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| Date |
2011-03-10
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| Type |
—
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| Format |
application/pdf
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| Identifier |
http://www.jfs.org.tw/index.php/jfs/article/view/2011044
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| Source |
Journal of Financial Studies; Vol 18, No 1 (2010); 137
財務金èžå¸åˆŠ; Vol 18, No 1 (2010); 137 |
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| Language |
—
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