Bank-firm Relationships, Financial Supply Chain and Firm Performance

• Main Authors: Gan Shih Min, 甘世旻
• Other Authors: Wen Shiou Ying
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/49949149803846723273

碩士 === 長庚大學 === 企業管理研究所 === 95 === This paper proposes to investigate the bank-firm relationships and financial supply chain in Taiwan. We examine empirically the impact of banking relationships and financial supply chain on firm performance. Using a panel data set of 247 TSE listed firms in Taiwan from 1996 to 2005. The paper shows that firms with higher loan interest rate have higher performances but the number of related banks does not have any evidence of firm performance. On the other hand, firms with higher leverage and bank debt ratio may perform worse. The result indicates that concentrated banking relationships may not bring better loan conditions which won’t benefit firm performance. However, large amount of debt may deteriorate firm reputation, which damage to firm performance. We think that firms may be charged higher interest rate to actively maintain close relationship with related banks. Furthermore, we conduct the study to investigate the bank-firm relationships, financial supply chain and firm performance for three industries, textile, iron and steel, and electronics. We uncover that firms with better financial supply chain have higher performance. Generally, this study indicates that the financial supply chain could improve the firm performance but do not have any evidence that firms maintain long-term or close relationship with banks have better performance.