Journal of Financial Services Research

, Volume 45, Issue 2, pp 173–200

Bank Consolidation and Soft Information Acquisition in Small Business Lending


DOI: 10.1007/s10693-013-0163-5

Cite this article as:
Ogura, Y. & Uchida, H. J Financ Serv Res (2014) 45: 173. doi:10.1007/s10693-013-0163-5


We empirically examine the impact of bank consolidation on bank acquisition of soft information about borrowers. Using a dataset of small business financing, we find that mergers of small banks have a negative impact on soft information acquisition, whereas mergers of large banks have no impact. We also find some evidence that an increase in organizational complexity upon a merger, rather than a post-merger cost-cut, is likely to cause a negative and significant impact on soft information acquisition by small banks. These findings are consistent with the organizational theory that predicts a comparative advantage of simple and flat organizations in acquiring and processing soft information.


Bank consolidationBank mergerDecision authorityInformation acquisition

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.School of Political Science and EconomicsWaseda UniversityShinjuku-kuJapan
  2. 2.Graduate School of Business AdministrationKobe UniversityKobeJapan