The Importance of Individual-Pair Lending Relationships

2021 ◽  
Author(s):  
Omri Even-Tov ◽  
Xinlei Li ◽  
Christopher D. Williams ◽  
Hui Wang
Keyword(s):  
Lending Relationships

scholarly journals Relational capital in lending relationships: evidence from European family firms

2018 ◽  
Vol 52 (1) ◽  
pp. 277-301 ◽  
Author(s):  
Marco Cucculelli ◽  
Valentina Peruzzi ◽  
Alberto Zazzaro
Keyword(s):  
Family Firms ◽  
Relational Capital ◽  
Lending Relationships ◽  
European Family

Institutional Dual-Holders and Managers' Earnings Disclosure

2021 ◽  
Author(s):  
Leila Peyravan ◽  
Regina Wittenberg-Moerman
Keyword(s):  
Adverse Effect ◽  
Commercial Bank ◽  
Private Information ◽  
Voluntary Disclosure ◽  
Information Environment ◽  
Earnings Forecast ◽  
Excess Returns ◽  
Lending Relationships ◽  
Playing Field ◽  
Information Advantage

We investigate how institutional (non-commercial bank) investors that simultaneously invest in a firm's debt and equity (dual-holders) influence the firm's voluntary disclosure. Because institutional dual-holders trade on private information gleaned through lending relationships, we predict and find that borrowers increase earnings forecast disclosure to reduce these investors' information advantage following the origination of loans with their participation. We also show that the increase in disclosure is stronger when the access to a borrower's private information endows dual-holders with a greater information advantage and when the consequences of this access are likely to be more pronounced. We further find that institutional dual-holders earn excess returns when trading equity of non-guider firms following loan origination, but not when firms issue guidance, confirming that earnings disclosure helps level the playing field among investors. Our findings highlight that firms actively use disclosure to mitigate the adverse effect of dual-holders on their information environment.

scholarly journals Lending Relationships and Credit Rationing: The Impact of Securitization

2012 ◽  
Author(s):  
Santiago Carbo-Valverde ◽  
Hans Degryse ◽  
Francisco Rodriguez Fernandez
Keyword(s):  
Credit Rationing ◽  
Lending Relationships ◽  
The Impact

What Drives Banks to Value Lending Relationships? The Role of the Chief Executive's Cultural Heritage

2021 ◽  
Author(s):  
Christine Christofi-Hau ◽  
Simon Wolfe ◽  
Theodora Bermpei ◽  
Antonios Nikolaos Kalyvas
Keyword(s):  
Cultural Heritage ◽  
Lending Relationships
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