Consumer Bankruptcy, Bank Mergers, and Information

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Show simple item record Allen, Jason Damar, H. Evren Martínez-Miera, David 2021-11-16T17:26:23Z 2021-11-16T17:26:23Z 2016-07
dc.identifier.bibliographicCitation Allen, J., Damar, H. E., & Martinez-Miera, D. (2015). Consumer Bankruptcy, Bank Mergers, and Information. Review of Finance, 20, (4), pp. 1289-1320
dc.identifier.issn 1572-3097
dc.description.abstract This article analyzes the relationship between consumer bankruptcy patterns and the destruction of soft information caused by mergers. Using a major Canadian bank merger as a source of exogenous variation in local banking conditions, we show that local markets affected by the merger exhibit an increase in consumer bankruptcy rates post-merger. The evidence is consistent with the most plausible mechanism being the disruption of consumer–bank relationships. Markets affected by the merger show a decrease in the merging institutions’ branch presence and market share, including those stemming from higher switching rates. We rule out alternative mechanisms such as changes in quantity of credit, loan rates, or observable borrower characteristics.
dc.description.sponsorship David Martinez-Miera acknowledges Financial support from Banco de España "II Programa de Excelencia en Educación e Investigación", Fundación Ramon Areces and Ministerio de Ciencia e Innovación "ECO2013-42849-P" and "JCI-2011-08963"
dc.language.iso eng
dc.publisher Oxford University Press
dc.rights © Oxford University Press
dc.subject.other Market power
dc.subject.other Credit
dc.subject.other Consolidation
dc.subject.other Competition
dc.subject.other Distance
dc.subject.other Industry
dc.subject.other Firms
dc.title Consumer Bankruptcy, Bank Mergers, and Information
dc.type article
dc.subject.jel G2
dc.subject.jel D4
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO2013-42849-P
dc.relation.projectID Gobierno de España. JCI-2011-08963
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 1289
dc.identifier.publicationissue 4
dc.identifier.publicationlastpage 1320
dc.identifier.publicationtitle Review of Finance
dc.identifier.publicationvolume 20
dc.identifier.uxxi AR/0000018122
dc.contributor.funder Ministerio de Ciencia e Innovación (España)
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