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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Credit allocation when borrowers are economically linked: An empirical analysis of bank loans to corporate customers, Journal of Corporate Finance June ; 2020 (2020). Hasan, Iftekhar; Minnick, Kristina; Raman, Kartik


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Hasan, Iftekhar; Minnick, Kristina; Raman, Kartik 
Number of authors
Status Published
Year of publication 2020 
Date 07.04.2020 
Name of article Credit allocation when borrowers are economically linked: An empirical analysis of bank loans to corporate customers 
Name of journal Journal of Corporate Finance
Volume of issue 62 
Number of issue June ; 2020 
Abstract Using detailed loan level data, we examine bank lending to corporate customers relying on principal suppliers. Customers experience larger loan spreads, higher intensity of covenants and greater likelihood of requiring collateral when they depend more on the principal supplier for inputs. The positive association between the customer’s loan spread and its dependence on the principal supplier is less pronounced when the bank has a prior loan outstanding with the principal supplier, and when the bank has higher market share in the industry. Longer relationships between the customer and its principal supplier, and between the bank and the principal supplier, mitigate lending constraints. The evidence is consistent with corporate suppliers serving as an informational bridge between the lender and the customer.
Free text descriptor in Finnish pankit; lainat; luotonantot; yritykset; sopimusehdot 
Free text descriptor in English Supply chain, Bank loans, Contract terms 
JEL-codes G21; G30; G32 
ISSN / e-ISSN 0929-1199 
auki Internet addresses
Open Access Not known