The importance of individual-pair lending relationships

IF 4.8 3区管理学 Q1 BUSINESS, FINANCE

Review of Accounting Studies Pub Date : 2023-07-26 DOI:10.1007/s11142-023-09782-9

Omri Even-Tov, Xinlei Li, Hui Wang, Christopher Williams

引用次数: 1

Abstract

Abstract We examine the significance and uniqueness of individual-pair relationships cultivated through repeated loan interactions. Using a hand-collected dataset compiled of borrowing manager and loan officer information, we find that individual-pair relationship loans are associated with a cost-of-debt reduction of between seven to 13 basis points. We also document that the relationship has an economic impact even when other affiliations, for example, institutional pairs, social ties, cultural proximity, and gender, are considered. Individual-pair relationships matter because they furnish lenders with useful soft information, especially when the firm has a poor hard information environment or when the bank and loan officer rely less on hard information. In addition, we find that individual-pair relationship loans have fewer rating downgrades, suggesting that accumulated soft information leads to better loan quality. Collectively, our results highlight the unique value of sustained professional engagement between two individuals in the lending process.

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个人配对借贷关系的重要性

摘要本文研究了通过重复贷款互动培养的个体-对关系的重要性和独特性。通过手工收集的借贷经理和信贷员信息汇编数据集，我们发现个人对关系贷款与债务成本降低7至13个基点相关。我们还证明，即使考虑到其他从属关系，例如机构配对、社会关系、文化接近性和性别，这种关系也会产生经济影响。个人配对关系很重要，因为它们为贷款人提供了有用的软信息，特别是当公司的硬信息环境很差，或者当银行和信贷员对硬信息的依赖较少时。此外，我们发现个人对关系贷款的评级下调较少，这表明软信息的积累导致贷款质量更好。总的来说，我们的研究结果突出了两个人在贷款过程中持续专业参与的独特价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Accounting Studies BUSINESS, FINANCE-

CiteScore

7.90

自引率

7.10%

发文量

期刊介绍： Review of Accounting Studies provides an outlet for significant academic research in accounting including theoretical, empirical, and experimental work. The journal is committed to the principle that distinctive scholarship is rigorous. While the editors encourage all forms of research, it must contribute to the discipline of accounting. The Review of Accounting Studies is committed to prompt turnaround on the manuscripts it receives. For the majority of manuscripts the journal will make an accept-reject decision on the first round. Authors will be provided the opportunity to revise accepted manuscripts in response to reviewer and editor comments; however, discretion over such manuscripts resides principally with the authors. An editorial revise and resubmit decision is reserved for new submissions which are not acceptable in their current version, but for which the editor sees a clear path of changes which would make the manuscript publishable. Officially cited as: Rev Account Stud