prepay, we show that high prepayment risk can trigger credit rationing by the bank. However, an upfront fee, which allows the … bank to lower the loan spread and therefore the prepayment risk, restores an equilibrium with funding. Large-sample tests …

A model of imperfectly competitive banks is examined under asymmetric information about borrower quality. Greater bank … empirical results on the relationship between bank competition and financial stability. The model can be used to define a …

In a model of dual agency problems where borrower-lenders and bank-nonbank incentives may conflict, we predict a hockey … stick relation between bank skin in the game and covenant tightness. As bank participation declines covenant tightness … bank relationship rents are high …

This paper studies the effects that heterogeneous multiple bank financing has on a firm's risk- and information …

Small and medium-sized firms often obtain capital via a mixture of relationship and arm's-length bank lending. We show … that such heterogeneous multiple bank financing leads to a lower probability of ineefficient credit foreclosure than both … monopoly relationship lending and homogeneous multiple bank financing. Yet, in order to reduce hold-up and coordination …

enhanced bank monitoring. Using a regression discontinuity design, I find that firms reduce disclosure following covenant …

We empirically examine the impact of bank consolidation on bank acquisition of soft information about borrowers. Using …

information frictions. We investigate whether financial statement complexity is associated with firms' reliance on bank financing … and with the terms of bank loans. We focus on two dimensions of complexity that capture the volume and presentation of … information: 10-K length and readability. First, we document that complexity is positively associated with firms' reliance on bank …

enhanced bank monitoring. Using a regression discontinuity design, I find that firms reduce disclosure following covenant …