We exploit variation in the timing of bank mergers and acquisitions (M&As) and adopt a difference- in-differences approach to examine how bank consolidation affects financial policies of corporate borrowers. We find that firms increase leverage ratios after their lending banks are involved in...

This paper uses Taiwanese data to examine the impact of firm-level corporate governance mechanisms on firms' average cash holdings. Specifically, it examines how a firm's number of banking relationships and the percentages of managerial ownership and board ownership impact the firm's level of...