's quality and on the relationship bank's information precision. Generally, heterogeneous multiple banking leads to fewer …Small and medium-sized firms typically obtain capital via bank financing. They often rely on a mixture of relationship … bank's fraction of total firm debt is not too large. …

incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are … consistent with this central implication of the private-information models and support the empirical importance of this theory. …

This paper studies optimal risk-taking and information disclosure by firms that obtain financing from both a … 'relationship' bank and 'arm's-length' banks. We find that firm decisions are asymmetrically influenced by the degree of … heterogeneity among banks: lowly-collateralized firms vary optimal risk and information precision along with the degree of …

property-rights theory: I characterize under which circumstances its predictions are correct when trade is contractible. Second … multitasking literature. Finally, the model produces implications of the property-rights theory that are empirically testable. …

literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems …Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … private information about borrower risk that is unobserved by the lender. The data also include public information about …

creates informational lock-in effects in bank-borrower relationships. In a competitive credit market, banks dissipate … anticipated profit from serving locked-in borrowers subsequently revealed to the bank as good to attract new borrowers with … analysis sheds light on how dynamic bank competition determines monitoring intensity, seniority, and maturity structure in bank …

This paper analyzes social connectedness as an information channel in bank lending. We move beyond the inefficient … lending requires more information and screening incentives are intact. On average, a standard-deviation increase in social … smaller losses if they default. Borrowers' counties tend to profit from their social proximity to bank lending, as GDP growth …

Small and medium-sized firms often obtain capital via a mixture of relationship and arm's-length bank lending. We show … that such heterogeneous multiple bank financing leads to a lower probability of ineefficient credit foreclosure than both … monopoly relationship lending and homogeneous multiple bank financing. Yet, in order to reduce hold-up and coordination …