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

Entrepreneurship and Bank Credit Availability

Sandra E. Black and Philip E. Strahan
The Journal of Finance
Vol. 57, No. 6 (Dec., 2002), pp. 2807-2833
Published by: Wiley for the American Finance Association
Stable URL: http://www.jstor.org/stable/3094544
Page Count: 27
  • 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
Entrepreneurship and Bank Credit Availability
Preview not available

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. This paper tests whether policy changes fostering competition and consolidation in U.S. banking helped or harmed entrepreneurs. We 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. We 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.

Page Thumbnails

  • Thumbnail: Page 
2807
    2807
  • Thumbnail: Page 
2808
    2808
  • Thumbnail: Page 
2809
    2809
  • Thumbnail: Page 
2810
    2810
  • Thumbnail: Page 
2811
    2811
  • Thumbnail: Page 
2812
    2812
  • Thumbnail: Page 
2813
    2813
  • Thumbnail: Page 
2814
    2814
  • Thumbnail: Page 
2815
    2815
  • Thumbnail: Page 
2816
    2816
  • Thumbnail: Page 
2817
    2817
  • Thumbnail: Page 
2818
    2818
  • Thumbnail: Page 
2819
    2819
  • Thumbnail: Page 
2820
    2820
  • Thumbnail: Page 
2821
    2821
  • Thumbnail: Page 
2822
    2822
  • Thumbnail: Page 
2823
    2823
  • Thumbnail: Page 
2824
    2824
  • Thumbnail: Page 
2825
    2825
  • Thumbnail: Page 
2826
    2826
  • Thumbnail: Page 
2827
    2827
  • Thumbnail: Page 
2828
    2828
  • Thumbnail: Page 
2829
    2829
  • Thumbnail: Page 
2830
    2830
  • Thumbnail: Page 
2831
    2831
  • Thumbnail: Page 
2832
    2832
  • Thumbnail: Page 
2833
    2833