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https://ah.lib.nccu.edu.tw/handle/140.119/73959
題名: | Does bank relationship matter for a firm`s investment and financial constraints? The case of Taiwan | 作者: | Shen, Chung-Hua;Wamg, Chien-An 沈中華 |
貢獻者: | 金融系 | 關鍵詞: | Bank relationships; Investment; Financial constraints; Cash-flow sensitivity | 日期: | 2005 | 上傳時間: | 23-Mar-2015 | 摘要: | This paper investigates the effects of a bank relationship on reducing a firm`s financial asymmetric information in an investment function. A bank relationship is proxied by the number of banks that a firm engages for its borrowing activities. A bank relationship is further divided into two regimes, i.e., a strong and a weak bank relationship regime, where the former is defined as one with smaller number of loan related-bank, and the latter is one with a greater number. It is expected that a strong bank relationship reduces the asymmetric information, i.e., investment cash-flow sensitivity here. Based on the examination of unique Taiwanese bank transaction data, our results show that investment is less sensitive to cash flow when a firm has a strong bank relationship. This implies that the firm holds less cash flow in hand for future investment expenditures. By contrast, when a firm has a weak bank relationship, the investment is sensitive to cash-flow. Our results are robust regardless if the bank relationship is proxied by either the loan amount or loan duration. | 關聯: | Pacific-basin Finance Journal, 13(2), 163-184 | 資料類型: | article | DOI: | http://dx.doi.org/10.1016/j.pacfin.2004.07.004 |
Appears in Collections: | 期刊論文 |
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