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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Banking sector deregulation, bank–firm relationships and corporate leverage
Organization Unit
Authors
  • Fabio Braggion
  • Steven Ongena
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Economic Journal
Publisher Wiley-Blackwell Publishing, Inc.
Geographical Reach international
ISSN 0013-0133
Volume 129
Number 618
Page Range 765 - 789
Date 2019
Abstract Text We study the effects of the 1971 deregulation of UK banking on firms’ financial and investment policies. The deregulation was a turning point in the evolution of firm-bank relationships during the twentieth century. Indeed, for more than 80 years prior to deregulation most firms had had a relationship with only one bank: this was no longer the case from 1971 on. Deregulation and intensifying competition in the banking sector spurred firms-in local markets with many banks already active-to increase leverage and to invest more in research and development. Bank debt similarly expanded while trade credit contracted.
Official URL https://academic.oup.com/ej/article/129/618/765/5289458
Digital Object Identifier 10.1111/ecoj.12569
Other Identification Number merlin-id:15128
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