Small and medium-sized firms typically obtain capital via bank financing. They often rely on a mixture of relationship … show that the incidence of inefficient credit termination and subsequent firm liquidation is contingent on the borrower …’s quality and on the relationship bank’s information precision. Generally, heterogeneous multiple banking leads to fewer …

that such heterogeneous multiple bank financing leads to a lower probability of ineefficient credit foreclosure than both … profits, the probability of ineefficient credit-renegotiation is shown to decrease along with the relationship bank …Small and medium-sized firms often obtain capital via a mixture of relationship and arm's-length bank lending. We show …

relationshipʺ bank and arm’s-lengthʺ banks. We find that firm decisions are asymmetrically influenced by the degree of heterogeneity …

This paper studies the effects that heterogeneous multiple bank financing has on a firm's risk- and information …-policy, particularly with respect to credit renegotiation efficiency. We find that a significant, yet limited, degree of relationship …