Degryse, Hans and Kokas, Sotirios and Minetti, Raoul and Valentina, Peruzzi (2023) Bank Information and Firm Growth: Microeconomic Evidence from the US Credit Market. Journal of Financial Services Research. DOI https://doi.org/10.1007/s10693-023-00410-w
Degryse, Hans and Kokas, Sotirios and Minetti, Raoul and Valentina, Peruzzi (2023) Bank Information and Firm Growth: Microeconomic Evidence from the US Credit Market. Journal of Financial Services Research. DOI https://doi.org/10.1007/s10693-023-00410-w
Degryse, Hans and Kokas, Sotirios and Minetti, Raoul and Valentina, Peruzzi (2023) Bank Information and Firm Growth: Microeconomic Evidence from the US Credit Market. Journal of Financial Services Research. DOI https://doi.org/10.1007/s10693-023-00410-w
Abstract
We investigate the impact that banks’ information on borrowing firms has on firm-level growth using matched bank-firm data from the U.S. credit market. Exploiting the structure of lending syndicates to construct proxies for banks’ information acquisition, we find consistent evidence that banks’ information spurs firms’ tangible and intangible investments, promoting better growth outcomes. We find limited evidence of banks’ exploitation of informational monopolies that could deter firms’ investment, even when banks hold significant credit market power. Banks’ information does not appear to bias firm growth towards capital-intensive investments, but rather fosters employment growth.
Item Type: | Article |
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Uncontrolled Keywords: | Firm Growth, Banks, Information, Syndicates |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 18 Oct 2022 11:16 |
Last Modified: | 30 Oct 2024 21:01 |
URI: | http://repository.essex.ac.uk/id/eprint/33702 |
Available files
Filename: JFSR_Revised_Manuscript_Oct.pdf