Abstract
This paper analyzed the relationship between firm-bank relations and firm’s interest expense. We measured firm-bank relations as the main bank loan ratio of firm, the number of bank loan relations of firm, the bank loan concentration ratio of firm. We also analyzed, by firm size, the differences of the relationship between firm-bank relations and firm’s interest expense. We found the negative relationship between firm’s interest expense and the main bank loan ratio or the bank loan concentration ratio. Also, We found the positive relationship between firm’s interest expense and the number of bank loan relations. However, we found the decrease of these relationships between firm-bank relations and firm’s interest expense as the increase of firm size. We inferred that the higher main bank loan ratio or the higher bank loan concentration ratio might have positive impacts on the smaller firm’s interest expense.
| Translated title of the contribution | Firm-Bank Relations and Firm’s Interest Expense |
|---|---|
| Original language | Korean |
| Pages (from-to) | 27-54 |
| Number of pages | 28 |
| Journal | 중소기업금융연구 |
| Volume | 39 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jun 2019 |