Degryse, Hans; De Jonghe, Olivier; Gambacorta, Leonardo; … - 2024
, which is the risk that a new technology has negative spillovers on the value of a bank's legacy loan portfolio. Using both … overhang. These results hold for two distinct measures of asset overhang and using bank mergers as a source of exogenous … variation in bank specialization. We further show that these heterogeneous effects arise through financial contracting. Overall …