Universal Banks and Relationships with Firms

Elsas, Ralf and Krahnen, Jan P. (2004): Universal Banks and Relationships with Firms. In: Krahnen, Jan P. and Schmidt, Reinhard H. (eds.) : The German Financial System. Oxford: Oxford Univ. Press. pp. 197-232

Abstract

Reviews recent empirical evidence regarding the special role of banks for the corporate governance of German firms (hausbank-relationships). We differentiate between the role of banks as monitors and financiers of large, exchange-listed firms and of smaller, non-listed firms. Sub-sections of the chapter deal with direct shareholdings, proxy-voting rights, supervisory board representation, debt financing, and distress resolution. The accumulated evidence supports the idea that relationship lending plays a distinctive role in German firms’ corporate governance, and will continue to influence the future development of the financial system.

• Item Type: Book Section
• Keywords: corporate governance, debt financing, house-bank/hausbank, proxy-voting, relationship lending, shareholdings, supervisory board
• Faculties: Munich School of Management > Institute for Finance and Banking
• Subjects: 300 Social sciences > 330 Economics
• ISSN: 978-0-19-9253-16-6 (print) ; 978-0-19-160165-1 (online)
• Place of Publication: Oxford
• Language: English