Bank Consolidation and Soft Information Acquisition in Small Business Lending

Yoshiaki Ogura and Hirofumi Uchida

Journal of Financial Services Research, 2014, vol. 45, issue 2, 173-200

Abstract: We empirically examine the impact of bank consolidation on bank acquisition of soft information about borrowers. Using a dataset of small business financing, we find that mergers of small banks have a negative impact on soft information acquisition, whereas mergers of large banks have no impact. We also find some evidence that an increase in organizational complexity upon a merger, rather than a post-merger cost-cut, is likely to cause a negative and significant impact on soft information acquisition by small banks. These findings are consistent with the organizational theory that predicts a comparative advantage of simple and flat organizations in acquiring and processing soft information. Copyright Springer Science+Business Media New York 2014

Keywords: Bank consolidation; Bank merger; Decision authority; Information acquisition; G21; G34; L22; L14; D82 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10693-013-0163-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Bank Consolidation and Soft Information Acquisition in Small Business Lending (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jfsres:v:45:y:2014:i:2:p:173-200

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10693

DOI: 10.1007/s10693-013-0163-5

Access Statistics for this article

Journal of Financial Services Research is currently edited by Haluk Unal

More articles in Journal of Financial Services Research from Springer, Western Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().