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 to firm performance following bank mergers. We investigate what determines this
decision and find both bank competition and the available firm collateral to be important
factors. We additionally provide new evidence that firms that are able to add a bank rela-
tionship 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: 41
Creation-Date: 2020-05
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp044
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_044v2