Disrupted Lending Relationship and Borrower's Strategic Default
Using a sample of bank loans to firms operating in the Greek tourism sector, and regional variation of tourism activities to identify the strategic defaulted firms, we examine the impact of bank consolidation on the firms’ payment behavior. We show that a merger-induced impairment of the lending rel...
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| Veröffentlicht in: | Journal of financial services research 2023-02, Vol.63 (1), p.91-116 |
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| container_title | Journal of financial services research |
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| creator | Avramidis, Panagiotis Asimakopoulos, Ioannis Malliaropulos, Dimitris |
| description | Using a sample of bank loans to firms operating in the Greek tourism sector, and regional variation of tourism activities to identify the strategic defaulted firms, we examine the impact of bank consolidation on the firms’ payment behavior. We show that a merger-induced impairment of the lending relationship is related to a higher likelihood of strategic default by the target bank’s borrowers. In contrast, mergers with a limited impact on the lending relationship have no effect on the probability of strategic default of target bank’s borrowers. The results highlight the importance of relationship lending benefits in mitigating strategic default risk. Our findings are robust to the alternative interpretation of soft budget constraints. |
| doi_str_mv | 10.1007/s10693-021-00368-7 |
| format | Article |
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Our findings are robust to the alternative interpretation of soft budget constraints.</description><subject>Bank loans</subject><subject>Budget constraint</subject><subject>Companies</subject><subject>Default</subject><subject>Economics and Finance</subject><subject>Finance</subject><subject>Financial Services</subject><subject>Macroeconomics/Monetary Economics//Financial Economics</subject><subject>Mergers</subject><subject>Risk exposure</subject><subject>Tourism</subject><issn>0920-8550</issn><issn>1573-0735</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2023</creationdate><recordtype>article</recordtype><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><recordid>eNp9UEtLxDAQDqLguvoHPBU8eKpOMm0eJ9FdX1AQfJxDmqZrl7WtSYv4781aYW8yMAPzveAj5JTCBQUQl4ECV5gCoykAcpmKPTKjuYgvgfk-mYFikMo8h0NyFMIaAJTM-IxcLZvgx35wVVK4tmraVfLsNmZouja8N31i2iq56bzvvpw_D8nL4M3gVo1Nlq4242Y4Jge12QR38nfn5O3u9nXxkBZP94-L6yK1yGFI0ZaSojQMkdsKK1HzHJWyhilhRGkz60zELbIKRMUcj7vMBFqOltYlwzk5m3x7332OLgx63Y2-jZGaCUEzxbmUkcUmlvVdCN7VuvfNh_HfmoLeFqWnonQsSv8WpUUUJZPI2a5twk4iUXIVZ5uOEyVEsF05v0v_x_gHvNJ1Gw</recordid><startdate>20230201</startdate><enddate>20230201</enddate><creator>Avramidis, Panagiotis</creator><creator>Asimakopoulos, Ioannis</creator><creator>Malliaropulos, Dimitris</creator><general>Springer US</general><general>Springer Nature B.V</general><scope>OQ6</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>885</scope><scope>8AO</scope><scope>8BJ</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ANIOZ</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FRAZJ</scope><scope>FRNLG</scope><scope>F~G</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>M1F</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20230201</creationdate><title>Disrupted Lending Relationship and Borrower's Strategic Default</title><author>Avramidis, Panagiotis ; 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| source | SpringerLink (Online service); Business Source Complete |
| subjects | Bank loans Budget constraint Companies Default Economics and Finance Finance Financial Services Macroeconomics/Monetary Economics//Financial Economics Mergers Risk exposure Tourism |
| title | Disrupted Lending Relationship and Borrower's Strategic Default |
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