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Essays On Banking And Corporate Finance, Alev Isil Yildirim
Essays On Banking And Corporate Finance, Alev Isil Yildirim
Dissertations, Theses, and Capstone Projects
This dissertation consists of two chapters.
Chapter 1: The Effect of Relationship Banking on Firm Efficiency
This paper analyzes the impact of relationship bank oversight on firm operational efficiency and default risk. I find that a new loan from a relationship bank improves the technical efficiency of inefficient firms that have an elevated probability of default. Moreover, borrowing firms with elevated default risk exposure experience reductions in their probabilities of default in the years following new relationship bank loans, benefiting both banks and borrowers. Thus, the benefits of relationship bank monitoring are most apparent the higher the ex ante default …