Porta, Rafael La; López-de-Silanes, Florencio; … - In: The Quarterly Journal of Economics 118 (2003) 1, pp. 231-268
In many countries, banks lend to firms controlled by the bank's owners. We examine the benefits of related lending using a newly assembled data set for Mexico. Related lending is prevalent (20 percent of commercial loans) and takes place on better terms than arm's-length lending (annual interest...