Financial Markets and Twentieth Century Industrialization: Evidence From U.S. and Canadian Steel Producers
AbstractDespite the diverse and developed nature of twentieth century U.S. and Canadian financial markets, the history of both economies is replete with claims of inefficiency and inadequacy among financial intermediaries, particularly the banking sectors. In Canada it has been argued that banks were oligopolistic and favoured an entrenched merchant class over industrialists. In the U.S. the unit banking system has been perceived as unstable and of an inefficiently small scale. This paper examines the experiences of a set of firms from a large and economically important manufacturing industry; primary steel production; in an effort to determine the impact differences in macro financial markets have had on micro financial decision making. We find statistically significant, but not necessarily economically important, relationships among national capital market characteristics, firms' financing decisions, and firms' capital costs.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1003.
Length: 33 pages
Date of creation: Jan 2002
Date of revision:
North American Industrialization; Capital Market Development; Financial Intermediation;
Find related papers by JEL classification:
- N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
- N62 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: 1913-
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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