Winners or Losers? The Effects of Banking Consolidation on Corporate Borrowers

Winners or Losers? The Effects of Banking Consolidation on Corporate Borrowers

  • EMILIA BONACCORSI DI PATTI
  • GIORGIO GOBBI

Article first published online: 20th March 2007 DOI: 10.1111/j.1540-6261.2007.01220.x

Abstract


We estimate the impact of bank mergers and acquisitions (M&As) on outstanding credit, credit lines, and the sensitivity of investment to cash flow using a large sample of Italian corporate borrowers. We distinguish between firms that experienced relationship termination as a consequence of bank M&As and those that did not. Our findings are consistent with bank M&As having an adverse effect on credit, particularly when the M&A is followed by relationship termination. The effect persists 3 years and then is absorbed, suggesting that firms are able to compensate for the negative shock.

Sign in to access the full article.

Related articles


Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants

  • MATTHEW T. BILLETT
  • TAO‐HSIEN DOLLY KING
  • DAVID C. MAUER

Article first published online: 20th March 2007 / DOI: 10.1111/j.1540-6261.2007.01221.x

Read Article

Smart Institutions, Foolish Choices: The Limited Partner Performance Puzzle

  • JOSH LERNER
  • ANTOINETTE SCHOAR
  • WAN WONGSUNWAI

Article first published online: 20th March 2007 / DOI: 10.1111/j.1540-6261.2007.01222.x

Read Article

Financial Synergies and the Optimal Scope of the Firm: Implications for Mergers, Spinoffs, and Structured Finance

  • HAYNE E. LELAND

Article first published online: 20th March 2007 / DOI: 10.1111/j.1540-6261.2007.01223.x

Read Article

A Theory of Takeovers and Disinvestment

  • BART M. LAMBRECHT
  • STEWART C. MYERS

Article first published online: 20th March 2007 / DOI: 10.1111/j.1540-6261.2007.01224.x

Read Article

How Are Firms Sold?

  • AUDRA L. BOONE
  • J. HAROLD MULHERIN

Article first published online: 20th March 2007 / DOI: 10.1111/j.1540-6261.2007.01225.x

Read Article

On the Importance of Measuring Payout Yield: Implications for Empirical Asset Pricing

  • JACOB BOUDOUKH
  • RONI MICHAELY
  • MATTHEW RICHARDSON
  • MICHAEL R. ROBERTS

Article first published online: 20th March 2007 / DOI: 10.1111/j.1540-6261.2007.01226.x

Read Article

Are you an Author?


Please read our submission requirements and find out how to submit your paper to the Journal of Finance

Submit a paper