strategy if banks think long-term. If banks are myopic no information sharing may occur. …

We test whether financial fluctuations affect firms' decisions, through their impact on banks' cost of funding. We …-2012 sovereign debt crisis. Using newly available data linking over 3,000, mostly privately-held, non-financial firms to their bank(s …), we find that increases in Italian banks' CDS spreads and decreases in their equity valuations lead younger and smaller …

We examine the coexistence of banks and financial markets, studying a credit market where the qualities of investment … projects are not observable and the investment decisions of entrepreneurs are not contractible. Standard banks can alleviate … investment banks and rating agencies have screening know-how and can alleviate adverse-selection problems. In competition …