Do Firms Benefit from Concentrating their Borrowing? Evidence from the Great Recession

Giorgio Gobbi and Enrico Sette

Review of Finance, 2014, vol. 18, issue 2, 527-560

Abstract: We investigate whether the extent to which firms concentrate their borrowing from banks mitigates the credit contraction that followed the default of Lehman. Using micro data from a large sample of Italian firms, we show that firms borrowing from fewer banks and those with more concentrated borrowing suffer on average a smaller contraction in bank credit and have a lower probability of being credit-rationed. The results hold controlling for several firm-level characteristics and for the possible endogeneity of the measures of concentration of borrowing.

Date: 2014
References: View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
http://hdl.handle.net/10.1093/rof/rft017 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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:oup:revfin:v:18:y:2014:i:2:p:527-560.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Review of Finance is currently edited by Marcin Kacperczyk

More articles in Review of Finance from European Finance Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().