This paper investigates whether monitoring by bank lenders affects CEO incentives of borrowing firms. We find that an … increase in bank monitoring incentives significantly reduce the sensitivity of CEO wealth to stock return volatility (Vega …). The results are more profound when bank lenders are more powerful and reputable and have a prior lending relationship with …

concentrating their lending disproportionately into one industry. This specialization improves a bank’s industry-specific knowledge … and, ultimately, bank performance. Banks concentrate more on their primary industry in times of instability and relatively …

We examine the impact on a firm when it is exogenously forced to switch its bank relationship from one branch to … another branch of the same bank. We show the effect depends directly on the relative balance between the hard accounting … information provided to the bank by the firm, as part of the bank's internal credit rating system and the provision of soft …

left-tail risk protection, conditional on a crisis, fully explains this Big−Small bank equity premium “fee” paid in normal … the big bank equity return discount in non- crisis times. Over several economic cycles, there is no abnormal Big …−Small bank equity premium and bailout insurance is fairly priced for equityholders in that there is no difference between big and …

concentrating their lending disproportionately into one industry. This specialization improves a bank's industry-specific knowledge … and, ultimately, bank performance. Banks concentrate more on their primary industry in times of instability and relatively …

Syndication increases the overlap of bank loan portfolios and makes them more vulnerable to contagious effects. We … develop a novel measure of bank interconnectedness using syndicated corporate loan portfolios, overlap based on industry and … by bank diversification, less by bank size or overall loan market size. Interconnectedness is positively correlated with …

concentrating their lending disproportionately into one industry. This specialization improves a bank’s industry-specific knowledge … and, ultimately, bank performance. Banks concentrate more on their primary industry in times of instability and relatively …

advisors to acquirers. In particular, the target earns higher abnormal returns when the target's own bank certifies the (more …. Second, acquirers predominantly use commercial bank advisors to obtain access to bank loans that may be used to finance the …. Moreover, the advising bank's recommendations may be distorted by considerations related to credit exposure incurred in both …