We provide measures of absolute and relative equity agency costs for corporations under different ownership management structures. Our base case is Jensen Meckling's (1976) zero agency‐cost firm, where the manager firm's sole shareholder. utilize a sample 1,708 small from FRB/NSSBF database find that (i) are significantly higher when an outsider rather than insider manages firm; (ii) inversely related to manager's share; (iii) increase with number nonmanager shareholders, (iv) lesser extent,...

Abstract The informational opacity of small businesses makes them an interesting area for the study banks' lending practices and procedures. We use data from a survey to analyze micro level differences in loan approval processes large banks. provide evidence that banks ($1 billion or more assets) employ standard criteria obtained financial statements decision process, whereas rely greater extent on information about character borrower. These cookie-cutter approaches are compatible with...

Abstract We examine the wealth effects of 3 regulatory changes designed to improve minority-shareholder protection in Chinese stock markets. Using value a firm’s related-party transactions as an inverse proxy for quality corporate governance, wefind that firms with weaker governance experienced significantly larger abnormal returns around announcements new regulations than did stronger governance. also find strong ties government not benefit from regulations, suggesting minority shareholders...

The informational opacity of small businesses makes them an interesting area for the study banks' lending practices and procedures. We use a survey conducted by Federal Reserve to analyze micro-level differences between large banks in loan approval process. provide evidence that ($1 billion or more assets) tend employ standard criteria obtained from financial statements decision process, but (less than $1 deviate these relying larger extent on character borrower. Some results are...

This study examines the capital‐structure decisions of privately held US firms using data from four nationally representative surveys conducted 1987 to 2003. Book‐value firm leverage, as measured by either ratio total loans assets or liabilities assets, is negatively related age and minority ownership; positively industry median corporate legal form organization, number banking relationships. In general, these results provide mixed support for both Pecking‐Order Trade‐Off theories capital structure.

Using newly available data from the Board's 1993 National Survey of Small Business Finances together with 1987 survey, this article analyzes competition between banks and nonbanks in U.S. market for small business credit. It explores nonbank as an explanation decline banks' share lending by examining sources credit used firms. examines both bank shares dollar amount to businesses, including how these have changed 1993, incidence borrowing, which is defined percentage firms...

Commercial real estate makes up a relatively small percentage of most institutional portfolios, even though the existing literature has consistently reported attractive risk‐return characteristics that would suggest much larger allocations. This discrepancy been explained by perceived lack comparability between return series calculated for and those other asset classes. Just as investors actively involved in futures markets do not consider individual common stocks to be traded continuously,...

We examine the wealth effects of three regulatory changes designed to improve minorityshareholder protection in Chinese stock markets.Using value a firm's related-party transactions as an inverse proxy for quality corporate governance, we find that firms with weaker governance experienced significantly larger abnormal returns around announcements new regulations than did stronger governance.This evidence indicates securities-market regulation can be effective protecting minority shareholders...

We consider comprehensive data on crowdfunding in the U.S., including debt (marketplace lending), rewards, donations, and equity crowdfunding, to formally test for first time if banks are complements or substitutes crowdfunding. The indicate that bank failures a county associated with reduction rewards total (including donations as well, however, statistically unrelated those types of our empirical setting). consistent being aggregate number entrepreneurs county, while remaining seeking less...

Abstract We analyze changes in lending by U.S. banks to businesses from 1994 2011. find that businesses, and particular small declined precipitously following onset of the financial crisis. also examine relative business did, did not, receive Troubled Asset Relief Program (TARP) funds Treasury, receiving capital injections TARP failed increase their small‐business lending. Finally, we strong significant positive relations both bank adequacy profitability with