Shock Propagation and Banking Structure

• 成果类型: Article
• 署名作者: Giannetti, Mariassunta; Saidi, Farzad
• 署名单位: Stockholm School of Economics; Centre for Economic Policy Research - UK; European Corporate Governance Institute
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy135
• 发表日期: 2019
• 页码: 2499
• 关键词: Financial distress; capital structure; credit; COMPETITION; bankruptcy; liquidity; sales; returns; real; RISK

摘要

We explore whether lenders' decisions to provide liquidity in periods of distress are affected by the extent to which they internalize the negative spillovers of industry downturns. We conjecture that high-market-share lenders are more likely to internalize negative spillovers and show that they provide liquidity to industries in distress when fire sales are likely to ensue. High-market-share lenders also provide liquidity to customers and suppliers of distressed industries when the disruption of supply chains is expected to be costly. Our results suggest a novel channel to explain why credit concentration may favor financial stability.