’s ambiguous on the effect of banks on large firms. The empirical evidence suggests that while the average size of firms in the top …

The moral hazard incentives of the bank safety net predict that distressed banks take on more risk and higher leverage … include financial crises and are subject to different regulatory regimes (1985–1994, 2005–2014). We find that distressed banks …

Banks play a role in the corporate governance of firms as well as acting as debt financiers around the world. Universal … banks can have control over borrowing firms by representation on the board of directors or by holding shares through direct … loan market. We find that banks are more likely to act as lead arrangers, charge higher interest rate spreads and face less …