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Goethe-Universität Frankfurt am Main >
Fachbereich Wirtschaftswissenschaften, Universität Frankfurt a. M. >
Working Paper Series: Finance and Accounting, Universität Frankfurt a. M. >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/23413
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| Title: | | Heterogeneous Multiple Bank Financing, Optimal Business Risk and Information Disclosure  |
| Authors: | | Bannier, Christina E. |
| Issue Date: | | 2005 |
| Series/Report no.: | | Working paper series / Johann-Wolfgang-Goethe-Universität Frankfurt am Main, Fachbereich Wirtschaftswissenschaften : Finance & Accounting 148 |
| Abstract: | | This paper studies optimal risk-taking and information disclosure by firms that obtain financing from both a ?relationship? bank and ?arm?s-length? banks. We find that firm decisions are asymmetrically influenced by the degree of heterogeneity among banks: lowly-collateralized firms vary optimal risk and information precision along with the degree of relationship lending for projects with low expected cash-flows, while highly-collateralized firms do so for projects with high expected cash-flows. Incidences of inefficient project liquidation are minimized if the former firms rely on relationship banking to a low degree, the latter to a large degree. |
| Subjects: | | Risk Relationship Lending Asymmetric Information Liquidity Crisis Efficiency |
| JEL: | | D82 L14 G21 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Paper Series: Finance and Accounting, Universität Frankfurt a. M.
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