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Single Versus Multiple Banking Relationships-Evidence From Chinese Lending Market

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  • WEI YIN

    (School of Economics and Management, Jiulonghu Campus, Southeast University, Jiangning District, Nanjing, China, 211189, China)

  • KENT MATTHEWS

    (Cardiff Business School, Aberconway Building, Cardiff University, Colum Road, Cardiff CF10 3EU, United Kingdom)

Abstract

Using Chinese firm level data for 2003–2012, this paper determines the factors that drive firms to switch from single bank loan providers to multiple bank loan providers. The results show that large firms are more likely to switch from single to multiple lending relationships. This study finds that medium size and small firms of high quality are more likely to have a single borrower relationship while large and high quality firms are more likely to have multiple bank relationships. Increasing market competition decreases the probability of single bank-firm relationship.

Suggested Citation

  • Wei Yin & Kent Matthews, 2017. "Single Versus Multiple Banking Relationships-Evidence From Chinese Lending Market," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(01), pages 227-250, March.
    • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:01:n:s0217590816500247
    DOI: 10.1142/S0217590816500247
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