Template-Type: ReDIF-Paper 1.0
Title: Nowhere Else to Go: The Determinants of Bank-Firm Relationship Discontinuations After Bank Mergers
Author-Name: Oliver Rehbein
Author-Email: Oliver.rehbein@uni-bonn.de
Author-Name: Santiago Carbo-Valverde
Author-Email: scarbo@cunef.edu
Classification-JEL: G21, G34
Keywords: bank mergers, relationship banking, competition

Abstract:The decision to change or terminate a bank-firm relationship has been demonstrated to be crucial 
for firm performance following bank mergers. We find both competition and the available firm collateral 
to be important factors in enabling firms to switching banks, instead of dropping their bank relationships. 
We also provide novel evidence that firms who are able to \textit{add} a bank relationship following a merger 
exhibit much stronger post-merger performance. Our findings are consistent with the interpretation 
that bank-mergers cause a reduction in lending to most firms, leading them to search for alternative 
sources of finance.
Note: 
Length: 39
Creation-Date: 2018-09
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp044
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_044