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Do firms select their main bank relationship according to their risk or risk preferences? Relationship banking is … may not want to bear the additional costs. I employ a nested logit model to study the determinants of the main bank … relationship decision by newly established German firms. I find that firms that ask for bank support in case of financial distress …
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, we find the interacted effect of the main bank and R&D investment which increases with firm value, only appears in medium …
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not group members, but nevertheless have strong ties to a main bank also invest and sell more than firms without strong … bank ties …
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