Bank Integration and Financial Constraints: Evidence from U.S. Firms

摘要: This paper uses data on publicly-traded firms in the U.S. to analyze effect of interstate bank integration financial constraints borrowers face. A firm-level investment equation is estimated order test if reduces sensitivity capital expenditures level internal funds. The staggered deregulation cross-state acquisitions that took place between 1978 and 1994 helps estimate model. Integration decreases financing for bank-dependent firms. change firms’ access external finance explained by an increase share locally headquartered geographically diversified banks.