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

  1. Santiago Carbó-Valverde 1
  2. José Manuel Mansilla-Fernández 2
  3. Francisco Rodríguez-Fernández 3
  1. 1 Bangor University
    info

    Bangor University

    Bangor, Reino Unido

    ROR https://ror.org/006jb1a24

  2. 2 University of Bologna
    info

    University of Bologna

    Bolonia, Italia

    ROR https://ror.org/01111rn36

  3. 3 Universidad de Granada
    info

    Universidad de Granada

    Granada, España

    ROR https://ror.org/04njjy449

Revista:
Revista española de financiación y contabilidad

ISSN: 0210-2412

Any de publicació: 2017

Volum: 46

Número: 1

Pàgines: 1-27

Tipus: Article

Altres publicacions en: Revista española de financiación y contabilidad

Resum

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.

Informació de finançament

This work was supported by the Consejer?a de Econom?a, Innovaci?n, Ciencia y Empleo, Junta de Andaluc?a: [Grant Number P08-SEJ-03781]; Ministerio de Sanidad, Servicios Sociales e Igualdad(MICINN)- FEDER [Grant Number ECO2011-27954].

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