From soft and hard-nosed bankers: bank lending strategies and the survival of financially distressed firms

Do private banks act as hard-nosed bankers when firms get financially distressed compared to public banks that have the mandate to support regional economy? For German firms in the period 2000-2005, I find that the probability of leaving the market after financial distress is higher for firms financed by private banks. The effects of different lending strategies are even larger for cooperative banks than for public banks.

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Year of publication:	2009
Authors:	Höwer, Daniel
Publisher:	Mannheim : Zentrum für Europäische Wirtschaftsforschung (ZEW)
Subject:	Kreditgeschäft \| Krisenmanagement \| Liquidation \| Vergleich \| Privatbank \| Sparkasse \| Kreditgenossenschaft \| Deutschland \| financially distressed firms \| bank lending \| public banks \| cooperative banks

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Series:	ZEW Discussion Papers ; 09-059
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	612286533 [GVK] hdl:10419/28609 [Handle] RePEc:zbw:zewdip:09059 [RePEc]
Classification:	G21 - Banks; Other Depository Institutions; Mortgages ; G33 - Bankruptcy; Liquidation ; L14 - Transactional Relationships; Contracts and Reputation; Networks
Source:	EconStor

Persistent link: https://www.econbiz.de/10010299467