Multiple bank lending relationships in Italy: their determinants and the role of firms’ governance features

Giuseppe Vulpes

Finance from University Library of Munich, Germany

Abstract: The aim of this paper is to analyze the determinants of multiple-bank lending - one of the main features of the bank-firm relationships in Italy. The analysis suggests that multiple bank lending is significantly and importantly linked with firms’ governance characteristics. In particular, it emerges that firms adopting a less formalised model of governance - which could denote lower informational transparency or, more in general, lesser degree of protection of third creditors - are characterised by a greater level of multiple-bank lending. In this respect multiple-bank lending may be the consequence of a risk averse attitude of banks and thus constitutes a sort of insurance mechanisms whereby banks overcome difficulties in assessing their customer firms.

Keywords: bank firm relationships; multiple-bank lending; corporate governance (search for similar items in EconPapers)
JEL-codes: G21 G34 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2005-05-06
Note: Type of Document - pdf; pages: 20
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0505/0505008.pdf (application/pdf)

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:wpa:wuwpfi:0505008

Access Statistics for this paper

More papers in Finance from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).