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intensive interaction between banks and firms, often described as Hausbank relationships. Links between banks and firms include …. Allegedly, these relationships promote investment and improve the performance of firms. Furthermore, German universal banks are … management control. Most of the recent evidence regarding small firms suggests that a Hausbank relationship can indeed be …
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This paper studies how lending relationships impact firms' capital structure and debt-equity financing decisions. I depart from existing literature on lending relationships in two respects: First, I build a panel dataset on firm-loan observations. Second, I account for the endogenous nature of...
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The German financial market is often characterized as a bank-based system with strong bank-customer relationships. The corresponding notion of a housebank is closely related to the theoretical idea of relationship lending. It is the objective of this paper to provide a direct comparison between...
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This paper sheds light on the functioning of internal capital markets by analysing money market transactions within the German cooperatives and savings banks finance groups. Using a unique dataset, the money market statistical reporting, this is the first paper to explicitly analyze the...
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