Carmignani, Amanda; Omiccioli, Massimo - Banca d'Italia - 2007
-budget-constraint and liquidity effects, high concentration of bank credit reduces the likelihood of financial distress and liquidation, as … makes both financial distress and liquidation more likely. Ultimately, the overall effect of more concentrated banking … relations is a lower probability of liquidation but a higher probability of financial distress. This helps to explain the …