Year: 2018
Type: article
Abstract: ABSTRACT We provide evidence that the deregulation of U.S. state banking markets leads to a significant increase in the relative employment and capital growth of local firms with higher productivity, and that this effect is concentrated among young firms. Using financial data for a broad range of firms, our analysis suggests that this effect is driven by a shift in the composition of local bank credit supply toward more productive firms. We estimate that this effect translates into economically important gains in aggregate industry productivity and that changes in the allocation of labor play a central role in driving these gains.
Source: The Journal of Finance
DOI: 10.1111/jofi.12726
Institutions: Dartmouth College, Northeastern University, National Bureau of Economic Research, University of Wisconsin–Madison, University of California, Los Angeles, University of Toronto, Washington University in St. Louis, University of Florida, Indiana University Bloomington, Indiana University, Northeastern University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W3123955717