Banking Sector Deregulation, Bank-Firm Relationships and Corporate Leverage

• 成果类型: Article
• 署名作者: Braggion, Fabio; Ongena, Steven
• 署名单位: Tilburg University; University of Zurich
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12569
• 发表日期: 2019
• 页码: 765-789
• 关键词: competition

摘要

We study the effects of the 1971 deregulation of uk banking on firms' financial and investment policies. The deregulation was a turning point in the evolution of firm-bank relationships during the twentieth century. Indeed, for more than 80 years prior to deregulation, most firms had had a relationship with only one bank: this was no longer the case from 1971 on. Deregulation and intensifying competition in the banking sector spurred firms - in local markets with many banks already active - to increase leverage and to invest more in research and development. Bank debt similarly expanded, while trade credit contracted.