We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …'s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher … investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory …

This study investigates the effect of banks' dual holding on bank lending and firms' investment decisions using a … sample of listed firms in China. We find that dual holding leads to easier access to bank loans, a result that is more … and harms the investment efficiency for SOEs, while resulting in optimal lending decisions and enhanced investment …

engineering often is done by banks and investment houses led to the creation of structured products that often compete with … innovation (measured by off-balance sheet items as a percentage of total assets), affect bank growth (increase in deposits & net … income) as well as profitability (ROE & ROA) indirectly through the mediation of investment, lending, and advance ratio to …