Showing 1 - 10 of 337
How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank industry specialization. We empirically investigate the...
Persistent link: https://www.econbiz.de/10012738146
A recent string of theoretical papers highlights the importance of geographical distance in explaining loan rates for small firms. Lenders located in the vicinity of small firms face significantly lower transportation and monitoring costs, and hence considerable market power, if competing...
Persistent link: https://www.econbiz.de/10012739575
This paper examines how bank relationships affect firm performance. An empirical implication of recent theoretical models is that firms maintaining multiple bank relationships are less profitable than their single-bank peers. We investigate this empirical implication using a data set containing...
Persistent link: https://www.econbiz.de/10012743919
Recent theoretical models argue that a bank's organizational structure reflects its lending technology. A hierarchically organized bank will employ mainly hard information, whereas a decentralized bank will rely more on soft information. We investigate theoretically and empirically how bank...
Persistent link: https://www.econbiz.de/10012731935
How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank industry specialization. We empirically investigate the...
Persistent link: https://www.econbiz.de/10012785865
We investigate how bank organization shapes banking competition. We show that a bank's geographical lending reach and loan pricing strategy is determined by its own and its rivals' organizational structure. We estimate the impact of organization on the geographical reach and loan pricing of a...
Persistent link: https://www.econbiz.de/10012757551
Persistent link: https://www.econbiz.de/10010724696
This impressive Handbook presents the quantitative techniques that are commonly employed in empirical finance research together with real-world, state-of-the-art research examples.
Persistent link: https://www.econbiz.de/10011174191
We propose a heteroscedastic regression model to identify the determinants of the dispersion in interest rates on loans granted to small and medium sized enterprises. We interpret unexplained deviations as evidence of the banks’ discretionary use of market power in the loan rate setting...
Persistent link: https://www.econbiz.de/10005067359
Loan rates for seemingly identical borrowers often exhibit substantial dispersion. This paper investigates the determinants of the dispersion in interest rates on loans granted by banks to small and medium sized enterprises. We associate this dispersion with the loan officers' use of...
Persistent link: https://www.econbiz.de/10009292443