Prior research indicates that social capital constrains opportunistic behavior and facilitates cooperation in bilateral relationships (Coleman 1988; Guiso 2010). We hypothesize that firms conducting business with high social capital customers are perceived by their banks as having lower supply chain...

Masulis and Mobbs (2014, 2015) find that independent directors with multiple directorships allocate their monitoring effort unequally based on a directorship's relative prestige. We investigate whether bank loan contract terms reflect such unequal allocation of directors' monitoring effort. We...

This paper examines the relation between the corporate life cycle and lending spreads. Using a sample of 20,307 firm-loan observations spanning 5,076 publicly traded U.S. firms, we find that lending spreads follow a U-shape pattern across the life cycle phases. This pattern is in addition to the...