Bank Relationship and Firm Profitability

H.A. Degryse, S. Ongena

Research output: Working paperDiscussion paperOther research output

998 Downloads (Pure)


This paper examines how bank relationships affect firm performance. An empirical implication of recent theoretical models is that firms maintaining multiple bank relationships are less profitable than their single-bank peers. We investigate this empirical implication using a data set containing virtually all Norwegian publicly listed firms for the period 1979-1995. We find that profitability is substantially higher if firms maintain only a single bank relationship. We also find that firms replacing a single bank relationship are on average smaller and younger than firms not replacing a single bank relationship.
Original languageEnglish
Place of PublicationTilburg
Number of pages38
Publication statusPublished - 2000

Publication series

NameCentER Discussion Paper


  • bank relationships
  • firm profitability


Dive into the research topics of 'Bank Relationship and Firm Profitability'. Together they form a unique fingerprint.

Cite this