Scandinavian Working Papers in Economics
Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
No 180: Why Do Firms Switch Their Main Bank? - theory and evidence from Ukraine
Andreas Stephan (), Andriy Tsapin () and Oleksandr Talavera
Additional contact information
Andreas Stephan: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Andriy Tsapin: European University Viadrina
Oleksandr Talavera: Aberdeen Business School
Abstract: We examine why firms change their main bank and how this affects loans, interest payments and firm performance after switching. Using unique firm-bank matched Ukrainian data, the treatment effect estimates suggest that more transparent and riskier companies are more likely to switch their main bank. Importantly,main bank power, measured by equity holdings, appears to be one of the main drivers of firm switching behavior. Furthermore, we find that firms have lower performance after changing their main bank as they have to contend with higher interest payments.
Keywords: financial constraints; switching; main bank power; firm performance; Ukraine
29 pages, June 4, 2009
Full text files
cesiswp180.pdf
- Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:cesisp:0180This page generated on 2024-09-13 22:14:26.