Since 2014
Relationship Lending at Commercial Banks: Some Empirical Evidence
Journal of Financial Studies
View Archive Info| Field | Value | |
| Title |
Relationship Lending at Commercial Banks: Some Empirical Evidence
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| Creator |
Chia-Pin Chen
Yi-Hsun Lai Tse-Yin Hsu |
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| Description |
The primary purpose of this study is to analyze the effects of bank size, foreign ownership, and financial distress on relationship lending to informationally opaque small firms. We also discuss why firms choose single banking or multiple banking relationships and test the single-bank firm-opacity hypothesis and multiple-bank bank-distress hypothesis. Last, we examine how competition influences relationship lending. The empirical results reveal that large banks, foreign banks, and banks in distress may have difficulties extending relationship loans to informationally opaque small firms. In addition, small firms tend to establish single banking relationship and small firms with the primary bank in financial distress are more likely to have multiple bank lenders to protect themselves. As the market is more competitive, banks would be better off for making relationship-based loan contracts, and firms with intense banking relationships would receive more favorable loan terms. Keywords: Bank, Relationship lending, Single banking, Multiple-bank relationships, Competition |
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| Publisher |
Journal of Financial Studies
財務金èžå¸åˆŠ |
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| Date |
2011-06-22
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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/2011161
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| Source |
Journal of Financial Studies; Vol 12, No 2 (2004); 43
財務金èžå¸åˆŠ; Vol 12, No 2 (2004); 43 |
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| Language |
—
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