International bank credit, nonbank lenders, and access to external financing

Serena, J.-M., Spaliara, M.-E. and Tsoukas, S. (2022) International bank credit, nonbank lenders, and access to external financing. Economic Inquiry, 60(3), pp. 1214-1232. (doi: 10.1111/ecin.13078)

[img] Text
263599.pdf - Published Version
Available under License Creative Commons Attribution.



Using a cross-country firm-bank dataset, we examine how an unexpected increase in bank capital requirements by the European Banking Authority affects firms' financial choices. We find that the regulatory shock implies a reduction in the supply of bank credit, with US firms affected the most. Yet, US firms can tap into the public bond markets and secure credit lines from nonbank financial institutions. This has implications for their capital structure and their real outcomes. These results suggest that diversified domestic loan markets, in which banks and nonbank financial institutions lend to corporations, can help overcome reductions in cross-border bank funding.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Spaliara, Professor Marina Eliza and Tsoukas, Professor Serafeim
Authors: Serena, J.-M., Spaliara, M.-E., and Tsoukas, S.
Subjects:H Social Sciences > HG Finance
College/School:College of Social Sciences > Adam Smith Business School
Journal Name:Economic Inquiry
ISSN (Online):1465-7295
Published Online:08 March 2022
Copyright Holders:Copyright © 2022 The Authors
First Published:First published in Economic Inquiry 60(3): 1214-1232
Publisher Policy:Reproduced under a Creative Commons License

University Staff: Request a correction | Enlighten Editors: Update this record