On-Site Inspecting Zombie Lending
نویسندگان
چکیده
“Zombie lending” remains a widespread practice by banks around the world. In this paper, we exploit series of large-scale on-site inspections made on credit portfolios several Portuguese to investigate how these affect banks’ future lending decisions. We find that an inspected bank becomes 20% less likely refinance zombie firms, immediately spurring their default. Overall, seemingly reduce because incentives hold loans disappear once they are forced recognize losses. This paper was accepted Tomasz Piskorski, finance. Funding: D. Bonfim and G. Cerqueiro acknowledge financial support from Fundação para Ciência e Tecnologia [Grants PTDC/EGE-OGE/30314/2017 UID/GES/00407/2013]. H. Degryse acknowledges Fonds Wetenschappelijk Onderzoek. S. Ongena Horizon 2020 European Research Council [Grant ERC ADG 2016 - GA 740272 lending]. Supplemental Material: The data files online appendix available at https://doi.org/10.1287/mnsc.2022.4452 .
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ژورنال
عنوان ژورنال: Management Science
سال: 2023
ISSN: ['0025-1909', '1526-5501']
DOI: https://doi.org/10.1287/mnsc.2022.4452