Stephan, Andreas; Talavera, Oleksandr; Tsapin, Andriy - School of Economics, University of East Anglia - 2011
We examine firms' motivation to change their main bank and how this switch affects loans, interest payments and firm … and highly leveraged companies are more likely to switch their main bank. Importantly, firms tend to switch to a new main … bank which holds a higher share of equity in the firm and thereby has stronger power. The results also suggest that firms …