Main Bank Power, Switching Costs, and Firm Performance: Theory and Evidence from Ukraine
We examine firms’ motivation to change their main bank and how this switch affects loans, interest payments, and firm performance. Applying treatment effect analysis to unique firm-bank matched Ukrainian data, we find that larger and more highly leveraged companies are more likely to switch their main bank. Importantly, firms tend to switch to a new main bank that holds a higher share of equity in the firm and thus has stronger power. The results also suggest that after switching, firms obtain additional access to bank loans but, on average, have lower profits due to bigger interest payments.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||24 Aug 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.jibs.hj.se/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hhb:hjacfi:2011_007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Susanne Hansson)or (Stefan Carlstein) The email address of this maintainer does not seem to be valid anymore. Please ask Stefan Carlstein to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.