This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and relationship lending can be present. We conjecture and empirically validate that relationship lenders, who enjoy an informational advantage over arm's-length banks, are more...

In 2015, the volume of loans extended by banks to enterprises and organizations drastically declined. The volume of new loans granted during the year plummeted, while the amount of debt owed to the banking sector by corporate borrowers remained practically unchanged. The decline rate of credit...

We examine the impact of managerial optimism on the inclusion of performance-pricing provisions in syndicated loan contracts (PSD). Optimistic managers may view PSD as a relatively cheap form of financing given their upwardly biased expectations about the firm's future cash flow. Indeed, we find...