This paper examines the effects of strategic alliances on non-financial firms’ bank loan financing. We construct several measures to capture firms’ alliance activities using the frequency of alliance activities, the prominence of the alliance partner and the relative networking position in the overall alliance network. We find that firms with active alliance involvement experience a lower cost ...

This paper utilises the non-parametric frontier approach, DEA, to analyse the technical and scale efficiency in Japanese banking using a recent cross –section sample. Efficiency analysis is conducted across individual banks, bank types and bank size groups. Following Berger and Humphrey (1997), problem loans are controlled for as an exogenous influence on bank efficiency. Powerful size-efficien...

We study a model of interbank credit where physical and informational frictions limit the opportunities for intertemporal trade among banks and outside investors. Banks obtain loans in an over-the-counter market (involving search, bilateral matching, and negotiations over the terms of the loan) and hold assets of heterogeneous quality that in turn determine their ability to repay those loans. W...

We investigate the misallocation of credit in Japan associated with banks’ evergreening loans, distinguishing between two types of firm distress: (perhaps temporary) financial distress and technical distress, which reflects weak operational capabilities, as indicated by low total factor productivity. We show that previous evidence related to firms’ financial health is problematic...

This study aims to investigate the association between non-performing loans (NPLs) and profitability of banks in Bangladesh. The data twenty-five listed for twelve years spanning from 2010 2021 have been analyzed achieve research objective. through use ordinary least square (OLS) regression model, we found that NPL has a negative significant impact on determined by return asset (ROA). In additi...

The model presented addresses issues that have recently been discussed under the term ‘financial contagion’. I analyze a situation where the fractions of repaid loans (i.e., the returns on lending) in two domains (e.g., industries or countries) are driven by two independent factors, one specific to the domain and the other a general factor. The fact that these different factors are unobserved g...

This paper proposes the yield spread between public bonds and bank loans of the same firm (the Bond-Bank spread) as a measure of compensation for agency costs that cannot be mitigated by bondholders but can be mitigated by banks due to their ability to monitor the firm and renegotiate the loan. In a model of debt pricing and choice, the tradeoff between firm moral hazard and bank opportunism, l...