IOANNIDOU, VASSO; ONGENA, STEVEN - In: Journal of Finance 65 (2010) 5, pp. 1847-1877
This paper studies loan conditions when firms switch banks. Recent theoretical work on bank-firm relationships motivates our matching models. The dynamic cycle of the loan rate that we uncover is as follows: a loan granted by a new (outside) bank carries a loan rate that is significantly lower...