Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 13, 2021 erstellt
Beschreibung:
We investigate the impact of banking competition on corporate credit risk. Although banking competition does not, on average, affect corporate bankruptcy rates, we find that it causes corporate bankruptcies to increase significantly for high-leverage firms. This effect lasts up to eight years after the increase in banking competition and comes mainly from firms that have high short-term debt. These results suggest that banking competition may lead to tougher credit conditions particularly for firms that are more heavily dependent on the credit market