Bank Consolidation and Soft Information Acquisition in Small Business Lending

Yoshiaki Ogura*, Hirofumi Uchida

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Citations (Scopus)


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.

Original languageEnglish
Pages (from-to)173-200
Number of pages28
JournalJournal of Financial Services Research
Issue number2
Publication statusPublished - 2014 Apr


  • Bank consolidation
  • Bank merger
  • Decision authority
  • Information acquisition

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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