Theoretical models of lending and industrial organization theory predict that firm access to credit depends critically on bank market structure. However, empirical studies offer mixed results. Some studies find that higher concentration is associated with higher credit availability consistent...

This paper investigates the links between regulatory arbitrage, financial instability, and taxpayer loss exposures. We model and estimate ex ante safety-net benefits from increased leverage and asset volatility at a sample of large banks in US and Europe during 2003–2008. Hypothesis tests...

Investment opportunities depend on the level of financing constraints. Earlier research has mainly focused on the controversial argument that cash flow-investment correlations increase with the level of these constraints. We side-step this controversy by focusing on bank loans rather than cash...

Some studies find that higher bank concentration is associated with higher credit availability (information hypothesis) while others maintain that credit rationing is higher in less competitive bank markets (market power hypothesis). This study tests these two competing hypotheses by employing...

Mounting evidence indicates that firms, particularly SMEs, suffered from a significant credit crunch during this crisis. Little research exists on how SMEs coped with this problem due to a lack of data in the U.S. and elsewhere. We analyse for the first time whether trade credit provided an...

SME investment opportunities depend on the level of financing constraints that firms face. Earlier research has mainly focused on the controversial argument that cash flow-investment correlations increase with the level of these constraints. We focus on bank loans rather than cash flow. Our...

SME investment opportunities depend on the level of financing constraints that firms face. Earlier research has mainly focused on the controversial argument that cash flow-investment correlations increase with the level of these constraints. We focus on bank loans rather than cash flow. Our...