A Study on the Lending Relationship between Group-Affiliated Firms and their Dealing Banks

• Main Authors: Hsuan-Ju Lai, 賴泫儒
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/p6672e

碩士 === 逢甲大學 === 財務金融學所 === 90 === This study focuses on the differences of lending relationship between the group-affiliated firms and their member bank, vs. the group-affiliated firms without a member bank and their dealing banks. We collects individual loan transaction data, and financial and their dealing banks variables of the two groups. We use stylized fact and regression analyses, and obtain three main empirical results as follows. 1.Excepting interest rate, the group-affiliated firms with a member bank get no much premium in lending terms. Entering in bank industry will help group-affiliated firms to lower their capital cost. Moreover the group-affiliated firms with a member bank have better performance than the ones without a member bank. 2.According to the investment regression of Hoshi, Kashyap and Scharfstein(1991) suggested, we use their model to test whether the group-affiliated firms with their member bank will face less financial constraints because of their member bank’s help. The results prove this hypothesis. Thus, they don’t maintain much cash on hand for future investment. 3.According to interest rate regression of Ferri, Kang and Kim(2001) suggested, we examine the differences of the interest rate offering by their dealing banks between two groups, between pre- and post- Asian Financial Crisis. We find that the group-affiliate firms’ member bank don’t offer lower interest rate than other banks. They still can play the role of monitor well.