Changing banking relationships and client‐firm performance: Evidence from Japan for the 1990s

Review of Financial Economics - Tập 23 - Trang 107-119 - 2014
Daisuke Tsuruta1
1College of Economics, Nihon University, 1-3-2 Misaki-cho, Chiyoda-ku, Tokyo 102–8360, Japan

Tóm tắt

AbstractThe extant literature generally suggests that the performance of client firms deteriorates if their distressed main bank reduces the supply of credit. However, this insight is only consistent with the notion that main banks have an information advantage over other banks to the extent that a client firm has trouble getting access to credit if the firm changes its main bank. This paper shows that Japanese firms did change their main banking relationship when their main banks become distressed in a period with financial shocks. Surprisingly, these firms did not suffer from loss of access to credit and actually their performance significantly improved after their change of main banks.

Tài liệu tham khảo

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Thông tin xuất bản

Review of Financial Economics

Tập 23

107-119

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