A Theory of Conflicts of Interest in Banking Relationships
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Wook Sohn | - |
dc.date.available | 2018-12-06T04:46:40Z | - |
dc.date.created | 2017-12-29 | - |
dc.date.issued | 2007 | - |
dc.identifier.issn | 1016-8737 | - |
dc.identifier.uri | http://archives.kdischool.ac.kr/kdi_dev/handle/11125/28826 | - |
dc.description.abstract | This paper highlights a dark side of banking relationships by elucidating the conditions under which a pre-existing relationship between a lending bank and a borrower can be detrimental to positive valuation effects of loan announcements. The effect of a pre-existing relationship is more likely to be negative when the pre-existing loans are large and firms screening costs are low. A theoretical model shows that loan announcements positive effect on borrowers value due to the standard information advantage can be more than offset by the banks conflict of interest when the banks asset quality reputation is poor, i.e., when the probability of the bank holding a bad loan is large. | - |
dc.language | English | - |
dc.publisher | Korea International Economic Association | - |
dc.subject | Conflicts of interest | - |
dc.subject | Banking relationships | - |
dc.subject | Soft-budget constraint | - |
dc.subject | Sequential equilibriumJEL Classification: G21 | - |
dc.subject | G24 | - |
dc.subject | N221. IntroductionBank loan announcements provide additional information to equity markets about the quality of borrowing firms | - |
dc.subject | Conflicts of interest | - |
dc.subject | Banking relationships | - |
dc.subject | Soft-budget constraint | - |
dc.subject | Sequential equilibriumJEL Classification: G21 | - |
dc.subject | G24 | - |
dc.subject | N221. IntroductionBank loan announcements provide additional information to equity markets about the quality of borrowing firms | - |
dc.title | A Theory of Conflicts of Interest in Banking Relationships | - |
dc.type | Article | - |
dc.identifier.bibliographicCitation | INTERNATIONAL ECONOMIC JOURNAL, v.21, no.2, pp.177 - 198 | - |
dc.identifier.kciid | ART001249840 | - |
dc.description.journalClass | 1 | - |
dc.description.isOpenAccess | N | - |
dc.citation.endPage | 198 | - |
dc.citation.number | 2 | - |
dc.citation.startPage | 177 | - |
dc.citation.title | INTERNATIONAL ECONOMIC JOURNAL | - |
dc.citation.volume | 21 | - |
dc.contributor.affiliatedAuthor | Wook Sohn | - |
dc.type.docType | null | - |
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