Multiple but asymmetric bank financing : the case of relationship lending
- Empirical evidence suggests that even those firms presumably most in need of monitoringintensive financing (young, small, and innovative firms) have a multitude of bank lenders, where one may be special in the sense of relationship lending. However, theory does not tell us a lot about the economic rationale for relationship lending in the context of multiple bank financing. To fill this gap, we analyze the optimal debt structure in a model that allows for multiple but asymmetric bank financing. The optimal debt structure balances the risk of lender coordination failure from multiple lending and the bargaining power of a pivotal relationship bank. We show that firms with low expected cash-flows or low interim liquidation values of assets prefer asymmetric financing, while firms with high expected cash-flow or high interim liquidation values of assets tend to finance without a relationship bank. JEL - Klassifikation: G21 , G78 , G33
| Author: | Ralf Elsas, Frank Heinemann, Marcel TyrellGND |
|---|---|
| URN: | urn:nbn:de:hebis:30-17769 |
| Parent Title (English): | CESifo GmbH: CESifo working papers ; No. 1251 : Category 6, Monetary policy and international finance |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2004 |
| Year of first Publication: | 2004 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2005/10/06 |
| Tag: | Bank; Finanzierung; Fremdkapital; Kredit; Lieferanten-Kunden-Beziehung; Theorie lender coordination; multiple bank financing; relationship lending |
| GND Keyword: | Fremdfinanzierung; Fremdkapital; Bankkredit; Kredit; Bank; Unternehmen; Finanzierung; Beschaffungsmarketing; Beziehungsmanagement; Lieferung; Abnehmer |
| Page Number: | 47 |
| HeBIS-PPN: | 222318953 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Licence (German): |  Deutsches Urheberrecht |
