Winners or losers? The effects of banking consolidation on corporate borrowers

• 成果类型: Article
• 署名作者: di Patti, Emilia Bonaccorsi; Gobbi, Giorgio
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2007.01220.x
• 发表日期: 2007
• 页码: 669-695
• 关键词: selection bias; mergers; INFORMATION; INVESTMENT; EFFICIENCY; credit

摘要

We estimate the impact of bank mergers and acquisitions (M&As) on outstanding credit, credit lines, and the sensitivity of investment to cash flow using a large sample of Italian corporate borrowers. We distinguish between firms that experienced relationship termination as a consequence of bank M&As and those that did not. Our findings are consistent with bank M&As having an adverse effect on credit, particularly when the M&A is followed by relationship termination. The effect persists 3 years and then is absorbed, suggesting that firms are able to compensate for the negative shock.