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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Keep walking? Geographical proximity, religion, and relationship banking
Organization Unit
Authors
  • Thorsten Beck
  • Steven Ongena
  • Ilkay Sendeniz-Yüncü
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Journal of Corporate Finance
Publisher Elsevier
Geographical Reach international
ISSN 0929-1199
Volume 55
Page Range 49 - 68
Date 2019
Abstract Text We investigate the geographical proximity of firms to their relationship banks. We find that Islamic banks are more remote to their borrowers. We also find that the probability for a firm to connect to a bank substantially decreases in distance, but that the choice along bank characteristics determines how potent distance is in its impact. If the bank in the vicinity is an Islamic bank, distance plays a more muted role, especially in cities with a high conservative party vote and higher trust in religious institutions. Overall, these findings suggest that the presence of banks with certain characteristics in the vicinity may determine the within-firm and across-firm configurations of observable firm-bank connections.
Digital Object Identifier 10.1016/j.jcorpfin.2018.07.005
Other Identification Number merlin-id:16633
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