How local is local? Evidence from bank competition and corporate innovation in U.S.

Tian, L. and Han, L. ORCID: https://orcid.org/0000-0002-2778-3338 (2019) How local is local? Evidence from bank competition and corporate innovation in U.S. Review of Quantitative Finance and Accounting, 52 (1). pp. 289-324. ISSN 1573-7179 doi: 10.1007/s11156-018-0710-0

Abstract/Summary

This paper aims to fill in a research gap in the effects of bank competition on corporate innovation. In addition to the evidence on the favorable effects of bank competition on corporate innovation, we show novel evidence on the substitution effects of bank competition in a wider region and neighbor-state to local bank competition in financing corporate innovation activities. In banking market, we show ‘how local is local’ depends on the operating scope and information transparency of firms. Local banks have an information advantage over distant banks in financing local businesses and informationally opaque corporate innovation activities.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/75641
Identification Number/DOI	10.1007/s11156-018-0710-0
Refereed	Yes
Divisions	Henley Business School > Business Informatics, Systems and Accounting
Publisher	Springer
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• How local is local? Evidence from bank competition and corporate innovation in U.S. (deposited 16 Oct 2017 10:57)
  • How local is local? Evidence from bank competition and corporate innovation in U.S. (deposited 20 Feb 2018 10:36) [Currently Displayed]