This study examines the impact of trust and a national culture of secretiveness on the number of bank relationships per firm. We hypothesize that the degree of openness of a firm and trust between economic agents may influence the willingness of the firm to release sensitive information to its lenders, as well as the decision between maintaining single or multiple bank relationships. Using a sample of over 8000 non-financial firms operating in 12 countries from the eurozone we provide evidence that (...) a national culture of secrecy enhances the number of bank relationships, while trust has the opposite effect. Results are robust to the use of various estimation techniques, alternative definitions of secrecy and trust, controls for firm-level and country-level characteristics, and instrumental variables. The main implication of this finding is that the financial decisions of firms cannot be effectively examined without considering deep-rooted national cultural elements. We also find that the results are mainly driven by small and medium enterprises, implying that the higher informational opaqueness of these firms enhances the role of secrecy and trust. (shrink)

Unlike previous studies that consider the Chicago Board of Options Exchange implied volatility index, we examine long memory and fractality in the universe of nine CBOE volatility indices. Using daily data from October 5, 2007, to October 5, 2020, covering calm and crisis periods, we find evidence of long memory and fractality in all indices and a change in the degree of volatility persistence, which points to inefficiency. The long memory of the SKEW index is strong before the onset of (...) three crisis periods, but eases afterwards. The findings provide new insights that matter to investment decisions and trading strategies. (shrink)