The Review of Corporate Finance Studies Vol. 11 No. 2 2022
Do Ex-Bankers Benefit Nonfinancial Firms? Evidence from Job Transitions
Abstract
We document the beneficial impact of human capital transfer from banks to nonfinancial firms: firms hiring ex-bankers have higher asset and employment growth and easier access to bank loans. Using a unique employee-employer-matched data set from Russia and exogenous variation in ex-bankers’ supply due to bank-branch-network restructurings, we establish the causal interpretation of these patterns. We also show that ex-bankers’ human capital consists of bank-specific and banking industry expertise (with the latter being acquired through interbank connections). Firms recognize the value of ex-bankers, who receive significant salary bonuses when a new bank loan is issued to the firm (JEL G21, G32, J24). Received August 17, 2020; editorial decision January 5, 2022; by editor: Isil Erel.
- DOI
- 10.1093/rcfs/cfac006
- Volume
- 11
- Issue
- 2
- Pages
- 364-413
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref