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Bank Competition and Firm Creation

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  • Emilia Bonaccorsi di Patti
  • Giovanni Dell
  • Ariccia#x2019

Abstract

This paper investigates the empirical relationship between competition in the financial sector and the creation of firms in the non-financial sector. It presents new empirical evidence suggesting that competition in banking is more detrimental (or less favorable) to the emergence of new firms in those industrial sector where asymmetric information is more important. Such evidence is consistent with theories of banking arguing that competition maybe have a negative effect on the availability of credit to informationally opaque firms.

Suggested Citation

  • Emilia Bonaccorsi di Patti & Giovanni Dell & Ariccia#x2019, 2000. "Bank Competition and Firm Creation," Center for Financial Institutions Working Papers 00-20, Wharton School Center for Financial Institutions, University of Pennsylvania.
  • Handle: RePEc:wop:pennin:00-20
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    File URL: http://fic.wharton.upenn.edu/fic/papers/00/0020.pdf
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    References listed on IDEAS

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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