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Vol. 59, No. 2, pp. 153-163 (2008)

“Negative Impact of Bank Consolidation against on Soft Information Acquisition”
Yoshiaki Ogura (College of Business Administration, Ritsumeikan University), Hirofumi Uchida (Faculty of Economics, Wakayama University)

We empirically examine the impact of bank consolidation on bankers' acquisition of soft information about borrowers. Using a dataset of small businesses, we found that bank mergers have a negative impact on soft information acquisition by banks. This result implies that the increase in organizational complexity by bank mergers or the cost-cutting following upon mergers hindered soft information acquisition.