IDEAS home Printed from https://ideas.repec.org/a/bla/jfinan/v48y1993i1p247-66.html
   My bibliography  Save this article

The Value of Bank Durability: Borrowers as Bank Stakeholders

Author

Listed:
  • Slovin, Myron B
  • Sushka, Marie E
  • Polonchek, John A

Abstract

The authors examine the value of bank durability to borrowing firms. The analysis is based on theoretical models of the asset services view of intermediation that imply that private information and associated relationship-specific activities are intrinsic to bank lending. The authors analyze share price effects on firms with lending relationships with Continental Illinois Bank during its de facto failure and subsequent FDIC rescue. They find the bank's impending insolvency had negative effects and the FDIC rescue positi ve effects on client firm share prices. The authors conclude that borro wers incur significant costs in response to unanticipated reductions in bank durability and, thus, are bank stakeholders. Copyright 1993 by American Finance Association.

Suggested Citation

  • Slovin, Myron B & Sushka, Marie E & Polonchek, John A, 1993. "The Value of Bank Durability: Borrowers as Bank Stakeholders," Journal of Finance, American Finance Association, vol. 48(1), pages 247-266, March.
  • Handle: RePEc:bla:jfinan:v:48:y:1993:i:1:p:247-66
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1082%28199303%2948%3A1%3C247%3ATVOBDB%3E2.0.CO%3B2-3&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jfinan:v:48:y:1993:i:1:p:247-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/afaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.