Creditor concentration: An empirical investigation

S. Ongena, G. Tumer-Alkan, N. von Westernhagen

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Most of the literature on multiple banking assumes equal financing shares. However, unequal, asymmetric or concentrated bank borrowing is widespread, and creditor concentration is only weakly correlated with the number of bank relationships. This paper therefore investigates the determinants of creditor concentration for German firms using a comprehensive firm-bank level dataset for the time period between 1993 and 2003. We document that corporate borrowing from banks is very often concentrated, even for the largest firms in our sample. Leveraged firms and firms with more redeployable assets concentrate their borrowing from banks, as are firms dealing with a relationship lender that is profitable, that has lower monitoring costs, or that operates in a concentrated regional lending market.
Original languageEnglish
Pages (from-to)830-847
JournalEuropean Economic Review
Volume56
Issue number4
DOIs
Publication statusPublished - 2012

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Empirical investigation
Borrowing
Financing
Monitoring costs
Bank relationships
Assets
Banking
Large firms
Lending

Cite this

Ongena, S. ; Tumer-Alkan, G. ; von Westernhagen, N. / Creditor concentration : An empirical investigation. In: European Economic Review. 2012 ; Vol. 56, No. 4. pp. 830-847.
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Ongena, S, Tumer-Alkan, G & von Westernhagen, N 2012, 'Creditor concentration: An empirical investigation', European Economic Review, vol. 56, no. 4, pp. 830-847. https://doi.org/10.1016/j.euroecorev.2012.02.001

Creditor concentration : An empirical investigation. / Ongena, S.; Tumer-Alkan, G.; von Westernhagen, N.

In: European Economic Review, Vol. 56, No. 4, 2012, p. 830-847.

Research output: Contribution to journalArticleScientificpeer-review

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