Bank integration and financial constraints
Subtitle: evidence from u.s. firms
By: Ricardo Correa.
Contributors: Board of Governors of the Federal Reserve System (U.S.)
Series: International finance discussion papers -- no. 925; International finance discussion papers (Online) -- no. 925.
Publisher: Federal Reserve Board
Published: 2008
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "This paper uses data on publicly-traded firms in the U.S.  to analyze the effect of interstate bank integration on the financial constraints borrowers face.  A firm-level investment equation is estimated in order to test if bank integration reduces the sensitivity of capital expenditures to the level of internal funds.  The staggered deregulation of cross-state bank acquisitions that took place in the U.S.  between 1978 and 1994 helps estimate the model.  Integration decreases financing constraints for bank-dependent firms.  The change in firms' access to external finance is explained by an increase in the share of locally headquartered geographically diversified banks"--Federal Reserve Board web site.
Notes: Title from PDF file as viewed on 4/28/2008.

Includes bibliographical references.

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Mode of access: World Wide Web.