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Concentration, Hold-up, and Information Revelation in Bank Lending: Evidence From Chilean Firms

In: Banking Market Structure and Monetary Policy

Author

Listed:
  • Álvaro García

    (Banco Central de Chile)

  • Andrea Repetto

    (Universidad Adolfo Ibañez)

  • Sergio Rodríguez

    (Superintendencia de Bancos e Instituciones Financieras)

  • Rodrigo O. Valdés

    (International Monetary Fund)

Abstract

In this paper we empirically study bank-client relationships using a sample of Chilean manufacturing firms. We examine whether concentration and the duration of bank-client relationships affect the volume of bank lending. Our results indicate that lower concentration, measured by the number of banks a firm borrows from, is associated ith a large and positive effect on borrowing. The length of borrower-lender relationships has a positive—although not always statistically significant—effect on the amount borrowed.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Álvaro García & Andrea Repetto & Sergio Rodríguez & Rodrigo O. Valdés, 2004. "Concentration, Hold-up, and Information Revelation in Bank Lending: Evidence From Chilean Firms," Central Banking, Analysis, and Economic Policies Book Series, in: Luis Antonio Ahumada & J. Rodrigo Fuentes & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking Market Structure and Monetary Policy, edition 1, volume 7, chapter 7, pages 211-240, Central Bank of Chile.
  • Handle: RePEc:chb:bcchsb:v07c07pp211-240
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    References listed on IDEAS

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    Cited by:

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    3. Etumudon Ndidi Asien, 2016. "Determinants of Number of Bankers by Listed Nigerian Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 1-13, April.

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