In this paper, we investigate the impact of bank mergers on the lending relationship and on client-firm performance. We study bank mergers that have occurred in Japan since 2000 and find that banks reduce the loan amounts for firms with which they have a close relationship and that banks'...

This study empirically examines the impact of an exogenous decrease in banks’ shareholding on bank loans and firms’ risk-taking, utilizing a regulatory change in Japan relating to banks’ shareholding as an instrument. We find that an exogenous reduction in a bank’s shareholding decreased...

We examine earnings forecasts by sell-side analysts employed by a bank with a lending relationship with the covered firms. We find that lender-affiliated analysts' forecasts are more accurate than forecasts by their unaffiliated peers after establishment of the lending relationship. Evidence...