Commercial lending concentration and bank expertise: Evidence from borrower financial statements

• 成果类型: Article
• 署名作者: Berger, Philip G.; Minnis, Michael; Sutherland, Andrew
• 署名单位: University of Chicago; Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2017.06.005
• 发表日期: 2017
• 关键词: information; industry; RISK; FIRMS; debt; diversification; specialization; COMPETITION; INVESTMENT; loans

摘要

Lending concentration features prominently in models of information acquisition by banks, but empirical evidence on its role is limited. Using bank-level loan exposures, we find banks are less likely to collect audited financial statements from firms in industries and regions in which they have more exposure. These findings are stronger in settings in which adverse selection is acute and muted when the bank lacks experience with an exposure. Our results offer novel evidence on how bank characteristics are related to the type of financial information they use and support theoretical predictions suggesting portfolio concentration reveals a bank's relative expertise. (C) 2017 Elsevier B.V. All rights reserved.