Le Mans Université

Subject 5: On the relationships between bank financing and the risk-taking behavior of corporate managers

 

On the relationships between bank financing and the risk-taking behavior of corporate managers

Banks may influence firm investment decisions through their screening and monitoring skills (Benkraiem, 2014). Corporate managers have incentives to adapt their risk-taking behavior to bank preferences in order to obtain new credit or to secure credit renewal (Acharya et al., 2011; Bennardo et al., 2015). The strength of these incentives depends particularly on the importance of bank loans in a firm funding, the number of bank lenders with which the firm is engaged, the contribution of each bank to total borrowing, and the ability of every bank to deal with asymmetric information (Fluet and Garellea, 2014). A future Ph.D. student could build upon this reasoning to investigate how bank funding affects the risk-taking behavior of corporate managers in a European context, for instance in  France. As in several continental European countries, France typically relies on a bank-centered financial system. The context is consequently interesting to study how bank financing could affect the risk-taking behavior of corporate managers.

Pre-requisites: financial accounting; finance, quantitative analysis.

 

Host laboratory : Audencia (Nantes)

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