Article ID Journal Published Year Pages File Type
973726 Pacific-Basin Finance Journal 2012 23 Pages PDF
Abstract
► We investigate the dark side of bank-firm relationship. ► The fund diversification hypothesis is used to explain the distressed bank effect. ► The leverage hypothesis is used to explain the distressed firm effect. ► We reject the distressed bank effect for listed firms. ► We support the distressed firm effect for related banks.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Decoupling the distressed banks and their clients, and coupling the distressed firms and their lending banks
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