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Firm Industry Affiliation and Multiple Bank Relationships

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  • Steven Ongena

    () (University of Zurich)

  • Yuejuan Yu

    (Shandong University)

Abstract

Abstract We explain the number of bank relationships a firm maintains by the number of industries it operates in, analyzing 13,570 listed firms in 18 Eastern European countries. We estimate a variety of stylized models including OLS, Tobit and negative binomial that directly accounts at once for the number of bank relationships. Controlling for many firm characteristics and accounting for all observed and unobserved time-invariant heterogeneity across firms, we find that the number of industries the firm operates in corresponds to a higher number of bank relationships, possibly because banks specialize in certain industries.

Suggested Citation

  • Steven Ongena & Yuejuan Yu, 2017. "Firm Industry Affiliation and Multiple Bank Relationships," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(1), pages 1-17, February.
  • Handle: RePEc:kap:jfsres:v:51:y:2017:i:1:d:10.1007_s10693-015-0237-7
    DOI: 10.1007/s10693-015-0237-7
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    More about this item

    Keywords

    Number of firm-bank relationships; Firm industry affiliation;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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