Do bank hierarchies affect the use of guarantees?

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 257
Issue: C

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies how bank managers’ hierarchy influences guarantee use. Analyzing 17,900 Italian loan contracts, we show lower-level managers mitigate information asymmetries via relationship lending, while higher-level managers rely on quantitative data, increasing guarantee requirements. Results remain robust across subsamples.

Technical Details

RePEc Handle
repec:eee:ecolet:v:257:y:2025:i:c:s0165176525004896
Journal Field
General
Author Count
3
Added to Database
2026-01-24