Does bank relationship matter for corporate risk-taking? Evidence from listed firms in Taiwan

THUIR > College of Management > Department of Finance > Periodical Articles > Item 310901/23393

Please use this identifier to cite or link to this item: http://140.128.103.80:8080/handle/310901/23393

Title:	Does bank relationship matter for corporate risk-taking? Evidence from listed firms in Taiwan
Authors:	Chan C.-C., Lin B.-H., Chang Y.-H., Liao W.-C.
Contributors:	Department of Finance, Tunghai University, Taiwan;Department of Finance, National Chung Hsing University, Taiwan
Date:	2013
Issue Date:	2013-06-24T09:04:34Z (UTC)
Abstract:	Single-bank or multiple-bank relationship can play a role in the degree of corporate risk-taking that inspires financing decisions. We study whether or not the magnitude of corporate risk-taking is associated with bank relationship. We employ the public firms in Taiwan with the sample period from 2001 to 2005 and select three variables centered on earnings volatility and share price volatility as the proxies for corporate risk-taking. The empirical evidence suggests that multiple-bank relationship can drive firms to take higher risks under information asymmetry between banks and firms. The results remain unchanged even after controlling for the main-bank effect. Finally, we observe that firms with smaller size and higher growth opportunity tend to enhance the degree of corporate risk-taking as they develop multiple-bank relationship. ? 2013 Elsevier Inc. All rights reserved.
Relation:	North American Journal of Economics and Finance
Appears in Collections:	[Department of Finance ] Periodical Articles

Files in This Item:

File	Size	Format
index.html	0Kb	HTML	563	View/Open