If you need an accessible version of this item please contact JSTOR User Support

Did Glass-Steagall Increase the Cost of External Finance for Corporate Investment?: Evidence from Bank and Insurance Company Affiliations

Carlos D. Ramírez
The Journal of Economic History
Vol. 59, No. 2 (Jun., 1999), pp. 372-396
Stable URL: http://www.jstor.org/stable/2566556
Page Count: 25
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Did Glass-Steagall Increase the Cost of External Finance for Corporate Investment?: Evidence from Bank and Insurance Company Affiliations
Preview not available

Abstract

The Glass-Steagall Act may have increased the cost for corporations of raising external funds for investment spending. Significant differences are found in the way financial institutions influenced corporate investment spending. Investment regressions for a sample of companies affiliated to financial institutions are estimated and compared to those for a control sample. Prior to Glass-Steagall, affiliated companies do not display any sensitivity between investment spending and internal measures of liquidity, whereas the control sample does. After Glass-Steagall, bank and trust-affiliated companies display the same large sensitivity of investment spending to internal measures of liquidity as the control sample does.

Page Thumbnails

  • Thumbnail: Page 
372
    372
  • Thumbnail: Page 
373
    373
  • Thumbnail: Page 
374
    374
  • Thumbnail: Page 
375
    375
  • Thumbnail: Page 
376
    376
  • Thumbnail: Page 
377
    377
  • Thumbnail: Page 
378
    378
  • Thumbnail: Page 
379
    379
  • Thumbnail: Page 
380
    380
  • Thumbnail: Page 
381
    381
  • Thumbnail: Page 
382
    382
  • Thumbnail: Page 
383
    383
  • Thumbnail: Page 
384
    384
  • Thumbnail: Page 
385
    385
  • Thumbnail: Page 
386
    386
  • Thumbnail: Page 
387
    387
  • Thumbnail: Page 
388
    388
  • Thumbnail: Page 
389
    389
  • Thumbnail: Page 
390
    390
  • Thumbnail: Page 
391
    391
  • Thumbnail: Page 
392
    392
  • Thumbnail: Page 
393
    393
  • Thumbnail: Page 
394
    394
  • Thumbnail: Page 
395
    395
  • Thumbnail: Page 
396
    396