Cao, Jin; Garcia-Appendini, Emilia; Huylebroek, Cédric - 2024
, leading to hold-up problems. In this paper, we show that firms can reduce this informational gap by forming deposit … relationships with outside banks, thereby attenuating hold-up. Using unique data on the deposit and lending relationships of all … obtain significantly better loan conditions upon switching. In line with informational hold-up theory, these effects are …