Staying, Dropping, or Switching: The Impacts of Bank Mergers on Small Firms

• 成果类型: Article
• 署名作者: Degryse, Hans; Masschelein, Nancy; Mitchell, Janet
• 署名单位: Tilburg University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhp126
• 发表日期: 2011
• 页码: 1102
• 关键词: LENDING RELATIONSHIPS; consolidation; acquisitions; determinants; multiple; INSIDERS; industry; single; number; COSTS

摘要

Assessing the impacts of bank mergers on small firms requires separating borrowers with single versus multiple banking relationships and distinguishing the three alternatives of staying, dropping, and switching of relationships. Single-relationship borrowers who switch to another bank following a merger will be less harmed than those whose relationship is dropped and not replaced. Using Belgian data, we find that single-relationship borrowers of target banks are more likely than other borrowers to be dropped. We track postmerger performance and show that many dropped target-bank borrowers are harmed by the merger. Multiple-relationship borrowers are less harmed, as they can better hedge against relationship discontinuations. (JEL G21, G28, G34)