By integrating the staggered interstate bank deregulation into a gravity model following Goetz, Laeven, and Levine (2013, 2016), we construct a time-varying bank-specific instrument for geographic diversification and investigate its causal effect on corporate innovation via the lending channel....

We examine the effect of bank interventions on corporate innovation and firm value via the lens of debt covenant violations. Bank interventions have a significantly negative effect on innovation quantity, but no significant effect on quality. The reduction in innovation quantity is concentrated...

In this study, we investigate the relationship between various dimensions of diversification and the cost of debt for publicly traded bank holding companies (BHCs). We find that both domestic geographic diversification of deposits and diversification of assets lead to a lower bond yield-spread....

We test whether short selling is destabilizing comparing distressed financial firms to other firms using NYSE transactions records covering four years including the recent financial crisis. Aggressive short-selling is sometimes destabilizing by some measures, but its impact is small, vanishes...