search query: @indexterm Credit / total: 493
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| Author: | Black, S. E. Strahan, P. E. |
| Title: | Entrepreneurship and bank credit availability |
| Journal: | Journal of Finance
2002 : DEC, VOL. 57:6, p. 2807-2833 |
| Index terms: | Entrepreneurship Banks Credit USA |
| Language: | eng |
| Abstract: | The literature is divided on the expected effects of increased competition and consolidation in the financial sector on the supply of credit to relationship borrowers. The paper tests whether policy changes fostering competition and consolidation in U.S. banking helped or harmed entrepreneurs. The authors find that the rate of new incorporations increases following deregulation of branching restrictions, and that deregulation reduces the negative effect of concentration on new incorporations. They also find the formation of new incorporations increases as the share of small banks decreases, suggesting that diversification benefits of size outweigh the possible comparative advantage small banks may have in forging relationships. |
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