Abstract
This paper analyzed the relationship between firm size and main bank size by using Korean listed firms. We analyzed the differences of main bank size by the firm size. We showed the possibility of making relationship between bigger banks and smaller firms.
According to the results of this paper, the smaller size firms has the larger size of main bank. In Korean listed firms, it seems not to be difficult for smaller firms to make a main relationship with larger banks. The result of empirical analysis showed that the bank loan demand in korea was dominated by the smaller firms rather than by the larger firms. These results implies that the larger banks in korea are likely to focus on the smaller firms rather than the larger firms.
We can conclude that bank loan to the smaller firms would not decrease as the bank size becomes larger in Korea. This paper give an additional contribution to show the new evidence on the relationship between firm size and bank size. Also, This paper will give meaningful policy insights on the bank industry.
According to the results of this paper, the smaller size firms has the larger size of main bank. In Korean listed firms, it seems not to be difficult for smaller firms to make a main relationship with larger banks. The result of empirical analysis showed that the bank loan demand in korea was dominated by the smaller firms rather than by the larger firms. These results implies that the larger banks in korea are likely to focus on the smaller firms rather than the larger firms.
We can conclude that bank loan to the smaller firms would not decrease as the bank size becomes larger in Korea. This paper give an additional contribution to show the new evidence on the relationship between firm size and bank size. Also, This paper will give meaningful policy insights on the bank industry.
Translated title of the contribution | The relationship between Firm Size and Main Bank Size |
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Original language | Korean |
Pages (from-to) | 95-111 |
Number of pages | 17 |
Journal | 경영교육연구 |
Volume | 29 |
Issue number | 6 |
DOIs | |
State | Published - Dec 2014 |