includes more financial covenants which are also more restrictive. Switching banks after a violation does not reduce these …

macroeconomic risk, investors reduce direct investment and hold more bank deposits. This ‘flight to quality’ leaves banks flush with … liquidity. Inside banks, given lack of observability of effort, loan officers (or risk takers) are compensated based on the … volume of loans but are penalized if banks suffer a high enough liquidity shortfall. Outside banks, when there is heightened …

We document a significant inverse relationship between a firm’sdividend payouts and reliance on bank loan financing …. Banks limitdividend payouts to shareholders in order to protect the integrity oftheir senior claims on the firm’s assets …. Moreover, dividendpayouts decline in the presence of monitoring by relationship banks,which acts as an effective governance …

suggest that improving bank access to branching affects the sectoral specialization (or diversification) of output, in a …We document that the deregulation of bank branching restrictions in the United States triggered a reallocation across …