What drives banks to value lending relationships? The role of the Chief Executive’s cultural heritage

Seminar abstract

Does bank CEOs' cultural heritage shape the nexus between lending relationships and the cost of bank loans?

We show that banks, led by CEOs that trace their origin to more individualistic and masculine societies, are less inclined to share with their borrowers the savings accruing from strong lending relationships.

In contrast, banks led by CEOs that originate from societies where uncertainty avoidance and power distance are higher, exhibit a stronger propensity to reward their relationship borrowers with lower loan prices.

These findings are consistent with the view that cultural attributes affect the degree to which business relationships are valued.

How to attend this seminar

This seminar is being held online and is free to attend.

Please contact the organiser for more details on how to join.

Speaker bio

Nikolaos Antonios Kalyvas is Lecturer in Finance at Southampton Business School.

Previously he worked at the University of Greenwich and the University of Sussex. He read for his PhD at the University of Sussex.

His research interests are centred around the interaction between public policy and regulation with bank performance and corporate finance outcomes. His work has been published in journals such as Journal of Financial Services Research, Journal of International Financial Markets, Institutions and Money, Economics Letters etc.