Günseli Tümer-Alkan

Transmission of Bank Liquidity Shocks in Loan and Deposit Markets: The Role of Interbank Borrowing and Market Monitoring

We examine the international transmission of bank liquidity shocks from multinational bankholding companies to their subsidiaries. Our findings are consistent with the studies that document that parent bank fragility negatively affects lending by subsidiaries. We further find that reduction in foreign bank lending is stronger for those that are dependent on the interbank market. Moreover, foreign bank lending is determined by different factors in emerging markets and in developed countries. Finally, we show that liquidity needs determine the change in deposits in developing economies, especially during the recent crisis whereas market discipline is relatively more dominant in developed countries.

Corporate Governance: A Review of the Role of Banks

This book provides an insightful view of major issues in the economics of corporate governance (CG) and mergers. It presents a systematic update on the developments in the two fields during the last decade, as well as highlighting the neglected topics in CG research, such as the role of boards, CG and public interest and the relation of CG to mergers. Two important conclusions can be drawn from this book: the first is that corporate governance systems that better align shareholders’ and managers’ interests lead to better corporate performance; second, there is an important relationship between CG structures and the quality of firm decision-making, one of the most important being the decision to merge or take over another firm.

Do Exposures to Sagging Real Estate, Subprime or Conduits Abroad Lead to Contraction and Flight to Quality in Bank Lending at Home?

We investigate how differential exposures by German banks to the US real estate market during the 2007 subprime crisis affect their corporate lending in Germany. We find that banks with an exposure to the US real estate sector and to conduits cut their lending to German firms by more following a decrease in US home prices than banks that do not have such exposure. Moreover, these banks then also shift their lending to industry–region combinations with lower insolvency ratios.

Firms’ Choice of Financiers in M&A Deals: The Value of Bank-Firm Relationships

In this paper, we investigate the link between the financing of mergers and acquisitions deals and existing bank-firm relationships by using a unique dataset consisting of forty M&A deals in the Netherlands from 2004 to 2012. The dataset allows us to identify the existing relationship lender to the firm and the offers received from different banks to finance the deal. The results indicate that the existing bank relationship is the most important factor for a firm when choosing the financier of the deal. As expected, loan price, fee and loan size determine the choice too. The existing relationship continues to be valuable during the crisis, however, other deal specific factors start to matter as well. Finally, when switching between banks firms make their decisions depending on the cost level, value of collateral and loan size. Overall, the results point to the value of bank-firm relationships even though the borrowers may be relying too much on the old relationship bank.