Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank …

This paper empirically investigates how organizational hierarchy affects the allocation of credit within a bank. Using … an exogenous variation in organizational design, induced by a reorganization plan implemented in roughly 2,000 bank …

We studied information and interaction processes in six lending relationships between a universal bank and medium sized …, bank monitoring is based mainly on cheap, retrospective and internal data. In case of distress, more expensive, prospective … firm's investments might leave the bank in a very strong bargaining position and distort investment incentives. Therefore …