Previous studies show you to dual proprietors-that's, institutions you to as well keep security and debt of the identical business-internalize new shareholder-creditor argument and you may produce incentive positioning among them functions (Jiang et al. But not, minimization of stockholder-creditor disagreement comes at the cost of launching a separate disagreement one of loan providers. Creditors holding higher security stakes in debtor organizations might have most some other bonuses than loan providers holding tiny or no equity bet. This dispute anywhere between financial institutions is also thus apply to old boyfriend-ante obligations employing and you may old boyfriend-blog post personal debt renegotiation.