| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5089694 | Journal of Banking & Finance | 2012 | 15 Pages |
Abstract
⺠We model how bank rent extraction affects firm financing and investment efficiency. ⺠Main banks help mitigate classic underinvestment problems despite rent extraction. ⺠Abundant funds fuel main bank controlled overinvestment due to rent extraction. ⺠Financial deregulation is well intentioned and weakens the influence of main banks. ⺠The “equity for upside potential and bank debt for downside risk” bias hurts banks.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Xueping Wu, Jun Yao,