Corporate-Finance Benefits from Universal Banking: Germany and the United States, 1870-1914 / Charles W. Calomiris.

Format:

Book

Author/Creator:

Calomiris, Charles W.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4408.

NBER working paper series no. w4408

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Corporate-Finance Benefits from Universal Banking

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1993.

Summary:

Limitations on bank consolidation and branching in the United States at an early date effectively limited the scope of commercial banks and their involvement in financing large-scale industry, and increased information and transaction costs of issuing securities. In contrast, German industry was financed by large-scale universal banks who maintained long-term relationships with firms, involving ongoing monitoring and disciplining of management, and underwriting. Low costs of German industrial finance are reflected in lower investment banking spreads on securities issues and a higher propensity to issue equity relative to the United States.

Notes:

Print version record

July 1993.