Do Ex-Bankers Benefit Non-Financial Firms? Evidence from Job Transitions

Review of Corporate Finance Studies

77 Pages Posted: 17 Sep 2019 Last revised: 14 Jan 2022

See all articles by Lucy Chernykh

Lucy Chernykh

Clemson University

Sergey Mityakov

Florida State University - Department of Finance

Date Written: Jan 03, 2022

Abstract

We document the beneficial impact of human capital transfer from banks to non-financial firms: firms hiring ex-bankers have higher asset and employment growth and easier access to bank loans. Using a unique, employee-employer-matched dataset 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, as ex-bankers’ receive significant salary bonuses when a new bank loan is issued to the firm.

Keywords: bank-firm lending relations, human capital transfer

JEL Classification: G21, G32, J24

Suggested Citation

Chernykh, Lucy and Mityakov, Sergey, Do Ex-Bankers Benefit Non-Financial Firms? Evidence from Job Transitions (Jan 03, 2022). Review of Corporate Finance Studies, Available at SSRN: https://ssrn.com/abstract=3446114 or http://dx.doi.org/10.2139/ssrn.3446114

Lucy Chernykh

Clemson University ( email )

School of Accountancy and Finance
Clemson, SC 29634
United States

Sergey Mityakov (Contact Author)

Florida State University - Department of Finance ( email )

Tallahassee, FL 32306-1042
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
47
Abstract Views
440
PlumX Metrics