This paper asks how well different organizational structures perform in terms of generating
information about investment projects and allocating capital to these projects. A …

Theories based on incomplete contracting suggest that small organizations have a
comparative advantage in activities that make extensive use of “soft” information. We provide …

This paper studies the effects of banking mergers on individual business borrowers. Using
information on individual loan contracts between banks and companies, I analyze the effect …

When one banker asks another “What's the score?” shareholders needn't worry that these
bankers are wasting time discussing the ball game. More likely they're doing their jobs and …

This paper examines the link between diversification and risk-adjusted performance for
small community banks. The results show diversification benefits within broad activity …

We find that acquirers tend to recast the target in their own image, causing the small
business loan portfolio share of the consolidated bank to converge toward the pre-merger …

Agency theory implies that asset ownership and decision authority are complements. Using
1998 data from Texas commercial banks, we test whether the likelihood of local ownership …

Previous research has focused on economic factors that influence relationships between
entrepreneurs and banks. Trust is relevant because it can reduce agency problems. A …

Consolidation in the banking industry has sparked concern about the survival of small
banks, particularly as it relates to the availability of credit to small businesses. However, if …

Concern has been voiced, however, that the benefits of multi-office banking may be
achieved at the expense of small businesses. Specifically, some analysts worry that large …