Strategic Alliances and Lending Relationships

• 成果类型: Article
• 署名作者: Khan, Urooj; Lin, Vincent Yongzhao; Stice, Derrald; Ma, Zhiming
• 署名单位: University of Texas System; University of Texas Austin; Washington University (WUSTL); Peking University; University of Hong Kong
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0359
• 发表日期: 2024
• 页码: 307-332
• 关键词: information; IMPACT; collaboration; governance; networks; earnings; ventures; QUALITY; return; banks

摘要

We study how proprietary information flows in strategic alliances facilitate banks' information collection in private debt markets. We argue that lenders that have previously worked with a borrower's alliance partners have an information advantage and show that firms entering a strategic alliance receive a lower interest spread on loans from banks that have previously lent to their strategic partners than loans from other banks. Cross-sectional tests on alliances' economic importance and participants' information environment support our hypothesis that the loan price effect is driven by reduced information asymmetry between borrowers and their partners' relationship banks. Last, we find borrowers are more likely to obtain debt financing from alliance-related banks than from other banks. Overall, our findings are consistent with lenders that have previously worked with an alliance counterparty possessing debt contracting-relevant information about the soft nature of alliance value and the partners' commitment to alliances.