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 …

cannot be explained by observable manager characteristics explain substantial differences in bank policies and risk … whose economic origins are unobservable. This implies attempts to rein in bank risk-taking by targeting manager …

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 …

We derive the optimal financial claim for a bank when the borrowing firm's uninformed stakeholders depend on the bank … to establish whether the firm is distressed and whether concessions by stakeholders are necessary. The bank's financial … come from a healthy firm/bank coalition, the bank must hold either a very small or a very large equity stake when the firm …

the period 1993-1999 using data on bank-by-bank exposures to different industries and sectors. We find that …, diversification reduces bank return while producing riskier loans. For low-risk banks, diversification produces either an inefficient … of bank monitoring at high risk-levels and upon lending expansion into newer or competitive industries …

secondary loan markets. We investigate how and why a bank chooses among these markets to hedge the credit risk of a loan. We …

) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … deterioration in bank monitoring quality at high levels of risk and a deterioration in bank monitoring quality upon lending … bank return while endogenously producing riskier loans for all banks in our sample (this effect being most powerful for …