Relationship Capital and Financing Decisions

• 成果类型: Article; Early Access
• 署名作者: Geelen, Thomas; Morellec, Erwan; Rostova, Natalia
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Swiss Finance Institute (SFI); Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne; Centre for Economic Policy Research - UK; Universite Catholique de Lille; EDHEC Business School
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.02415
• 发表日期: 2025
• 关键词: relationship lending; capital structure; Debt maturity; default

摘要

Lending relationships matter for firm financing. In a model of debt dynamics, we study how lending relationships are formed and how they impact the joint choice of leverage and debt maturity, thereby rationalizing recent empirical findings and generating new predictions. In the model, lending relationships evolve through repeated interactions between firms and debt investors. Stronger lending relationships lead firms to adopt higher leverage ratios, issue longer term debt, and raise funds from nonrelationship lenders via syndicated loans or bonds issues when relationship quality is sufficiently high. Debt contracts involving nonrelationship investors have longer maturity than those exclusively issued to relationship investors.