This paper investigates whether the benefits of bank–borrower relationships differ depending on three factors identified in the theoretical literature: verifiability of information, bank size and complexity, and bank competition. We extend the current literature by analyzing how relationship...

This paper examines the economic impact of the collateral and the bank lending channels simultaneously by taking advantage of exogenous shocks to a firm’s tangible assets and a bank’s net worth caused by the massive Tohoku earthquake in 2011. We obtain the following findings: (1) damages to...