We find that banking relationships built through institutional cross-ownership influence the granting of loans as well as loan contract terms. Specifically, firms newly added to institutional cross-owners’ portfolios are more likely to borrow from banks that previously issued loans to other...

Following Miles and Snow’s Business Strategy (BS) topology, we find that banks imposerelatively higher loan spreads for the firms that follow an Innovation-Oriented Business Strategy(IOBS). We further document that IOBS is positively associated with corporate risk measures suchas variances in...