TY - JOUR

T1 - The effects of bank market power in short-term and long-term firm credit availability and investment

AU - Carbo-Valverde, Santiago

AU - Mansilla-Fernández, José Manuel

AU - Rodríguez-Fernández, Francisco

N1 - Financial support from MICINN-FEDER ECO2015-67656-P, ECO2014-59584 and Junta de Andalucía P12.SEJ.2463

PY - 2016/11/21

Y1 - 2016/11/21

N2 - This article investigates the short-term and long-term effects of bank market power on the availability of credit for companies, and on firm investment. Our results suggest that an increase in bank market power reduces firms’ credit availability and investment in the short-term, but firm investment recovers in the long-term. The economic significance of these relationships is found to be larger for SMEs than for other (larger) firms.

AB - This article investigates the short-term and long-term effects of bank market power on the availability of credit for companies, and on firm investment. Our results suggest that an increase in bank market power reduces firms’ credit availability and investment in the short-term, but firm investment recovers in the long-term. The economic significance of these relationships is found to be larger for SMEs than for other (larger) firms.

KW - Bank Loans

KW - Bank Market Power

KW - Euler equation

KW - Firm investment rate

KW - Risk Premium

U2 - 10.1080/02102412.2016.1242239

DO - 10.1080/02102412.2016.1242239

M3 - Article

VL - 46

JO - Spanish Journal of Finance and Accounting

JF - Spanish Journal of Finance and Accounting

SN - 0210-2412

ER -