Multiple Banking as a Commitment Not to Rescue

  • Paul Povel, PAUL POVEL
  • Published 2017

Abstract

We show why investors may prefer not to be a firm’s unique lender, even if they are in a strong bargaining position. Some firms need additional funds after a first investment: providing additional funds is rational after the first investment is sunk, but together the two investments are unprofitable. A unique lender will always provide additional funds and… (More)

Cite this paper

@inproceedings{Povel2017MultipleBA, title={Multiple Banking as a Commitment Not to Rescue}, author={Paul Povel and PAUL POVEL}, year={2017} }