Banks are widely believed to have an information advantage, but regulation forces them to sell deteriorating loans, potentially hampering renegotiation and amplifying the initial negative shock to the borrower. We study to what extent the secondary market affects loan outcomes after an initial...

Purpose: Are board ties among competitors harmful to customers? The prevalent assumption on board ties among competitors is that they harm customer benefits. This study examines the mechanism by which board ties with competitors result in an outcome conducive to customers....