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Should banks own equity stakes in their borrowers? A contractual solution to hold-up problems

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  • Mahrt-Smith, Jan

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  • Mahrt-Smith, Jan, 2006. "Should banks own equity stakes in their borrowers? A contractual solution to hold-up problems," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2911-2929, October.
    • Handle: RePEc:eee:jbfina:v:30:y:2006:i:10:p:2911-2929
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    Cited by:

    1. Kashif Rashid & Seep Nadeem, 2014. "The Role of Ownership Concentration, its Types and Firm Performance: A Quantitative Study of Financial Sector in Pakistan," Oeconomics of Knowledge, Saphira Publishing House, vol. 6(2), pages 10-61, June.
    2. Zhang, Huili & Chan, Kam C., 2018. "Bank shareholding and corporate cash management: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 44(C), pages 235-253.
    3. Wang, Hongjian & Luo, Tianpei & Tian, Gary Gang & Yan, Huanmin, 2020. "How does bank ownership affect firm investment? Evidence from China," Journal of Banking & Finance, Elsevier, vol. 113(C).
    4. Luo, Wei & Zhang, Yi & Zhu, Ning, 2011. "Bank ownership and executive perquisites: New evidence from an emerging market," Journal of Corporate Finance, Elsevier, vol. 17(2), pages 352-370, April.
    5. Nguyen, Pascal, 2011. "Corporate governance and risk-taking: Evidence from Japanese firms," Pacific-Basin Finance Journal, Elsevier, vol. 19(3), pages 278-297, June.
    6. Rabah Amir & Michael Troege, 2011. "On the effects of banks’ equity ownership on credit markets," Annals of Finance, Springer, vol. 7(1), pages 31-52, February.
    7. Azzam Islam, 2010. "Bank Ownership and Corporate Performance: Evidence from Egypt," Review of Middle East Economics and Finance, De Gruyter, vol. 5(3), pages 91-118, February.
    8. Mangena, Musa & Priego, Alba Maria & Manzaneque, Montserrat, 2020. "Bank power, block ownership, boards and financial distress likelihood: An investigation of Spanish listed firms," Journal of Corporate Finance, Elsevier, vol. 64(C).
    9. Song, Keke & Wang, Jun, 2023. "When banks become shareholder activists," Journal of Banking & Finance, Elsevier, vol. 153(C).
    10. Shi, Wei-Zhong & Ching, Yann-Peng & Fok, Robert (Chi-Wing) & Chang, Yuanchen, 2023. "Bank information monopolies and hold-up effects: International evidence," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 286-311.
    11. Rishabh, Kumar, 2021. "Bank as a Venture Capitalist," Working papers 2021/09, Faculty of Business and Economics - University of Basel.
    12. Falko Fecht & José-Luis Peydró & Günseli Tümer-Alkan & Yuejuan Yu, 2021. "Banks’ equity stakes in firms: A blessing or curse in credit markets?," Economics Working Papers 1802, Department of Economics and Business, Universitat Pompeu Fabra.
    13. Kim, Jin-Hyuk & Wagman, Liad, 2016. "Early-stage entrepreneurial financing: A signaling perspective," Journal of Banking & Finance, Elsevier, vol. 67(C), pages 12-22.
    14. Fan, Rui & Ma, Lijun & Pan, Jianping & Yin, Sirui & Gao, Hao, 2022. "Financial institution shareholding and corporate innovation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 835-856.
    15. von Beschwitz, Bastian & Foos, Daniel, 2018. "Banks’ equity stakes and lending: Evidence from a tax reform," Journal of Banking & Finance, Elsevier, vol. 96(C), pages 322-343.
    16. Ono, Arito & Suzuki, Katsushi & Uesugi, Iichiro, 2024. "When banks become pure creditors: The effects of declining shareholding by Japanese banks on bank lending and firms’ risk-taking," Journal of Financial Stability, Elsevier, vol. 73(C).
    17. Zemzem, Ahmed & Guesmi, Khaled & Ftouhi, Khaoula, 2017. "The role of banks in the governance of non-financial firms: Evidence from Europe," Research in International Business and Finance, Elsevier, vol. 42(C), pages 285-294.
    18. Lin, Xiaochi & Zhang, Yi & Zhu, Ning, 2009. "Does bank ownership increase firm value? Evidence from China," Journal of International Money and Finance, Elsevier, vol. 28(4), pages 720-737, June.
    19. Alhababsah, Salem, 2019. "Ownership structure and audit quality: An empirical analysis considering ownership types in Jordan," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 35(C), pages 71-84.
    20. Ana Mol-Gómez-Vázquez & Ginés Hernández-Cánovas & Johanna Koëter-Kant, 2019. "Bank market power and the intensity of borrower discouragement: analysis of SMEs across developed and developing European countries," Small Business Economics, Springer, vol. 53(1), pages 211-225, June.
    21. Gao, Wenlian, 2008. "Banks as lenders and shareholders: Evidence from Japan," Pacific-Basin Finance Journal, Elsevier, vol. 16(4), pages 389-410, September.
    22. Marie-Ann Betschinger, 2015. "Do banks matter for the risk of a firm's investment portfolio? Evidence from foreign direct investment programs," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1264-1276, August.
    23. Lai, Shaojie & Li, Xiaorong & Chan, Kam C., 2020. "Does bank shareholding impact corporate innovation? Evidence from China," Economic Modelling, Elsevier, vol. 92(C), pages 57-69.
    24. Pan, Xiaofei & Tian, Gary Gang, 2015. "Does banks’ dual holding affect bank lending and firms’ investment decisions? Evidence from China," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 406-424.
    25. Ana Mol-Gómez-Vázquez & Ginés Hernández-Cánovas & Johanna Koëter-Kant, 2022. "Banking stability and borrower discouragement: a multilevel analysis for SMEs in the EU-28," Small Business Economics, Springer, vol. 58(3), pages 1579-1593, March.

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