firms and banks are subject to moral hazard and monitoring is essential. Multiple-bank lending is optimal whenever the … benefit of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts … less profitable, and poor financial integration, regulation and inefficient judicial systems increase monitoring costs …

When a firm has external debt and monitoring by shareholders is essential, managerial bonuses are shown to be an … shareholders, but also between creditors and monitoring shareholders. A negative relation between corporate bond yields and …

determines borrower quality, loan terms, access to credit and bank monitoring of business term loans. Using a differences … credit by their bank. The reduction in collateral value also precedes a decrease in bank monitoring intensity and frequency …