Waseda Organizational and Financial Economics Seminar
The effect of bank mergers on client firms: Evidence from the credit supply channel (7/25)
| 講演者 Speaker |
Heather A. Montgomery （International Christian University） Profile |
|---|---|
| 日 時 Date & Time |
Monday, 25 July 2016, 13:00 – 14:30 |
| 会 場 Venue |
Rm. 1111 on the 11th floor, Building #11, Waseda University  |
| 主 旨 Outline |
This study investigates the effects of bank mergers on client firms. Using a particularly rich panel of data detailing firm borrowing from individual banks, we are able to control for demand-side effects and accurately estimate the effect of bank mergers on the supply of credit to client firms of the merging banks. We also examine the impact of bank mergers on other firm outcomes such as firm borrowing costs, growth in total loans, distance to default and firm investment. We find that bank merger announcements increase the likelihood of bank-firm relationship termination for all firms except credit-constrained, sick, “zombie” firms. Bank-firm relationship termination results in a contraction in credit supply. Healthy firms that switch are able to compensate for the reduced credit supplied by the former main bank with loans from other banks, but zombie firms are not. |
| プログラム Schedule |
13：00 Opening Remarks （Hideaki Miyajima (Waseda University)） 13：05 Presentation 14：05 Question-and-answer session 14：25 Concluding Remarks（Hideaki Miyajima (Waseda University)） |
| 対 象 Prospected Audience |
Faculty and staff members of a university, grad students, the general publics |
| 主 催 Organizer |
Research Institute of Business Administration,Waseda University Waseda Institute for Advanced Study,Waseda University |
| 申込み Registration |
Advance reservations not required |
