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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Banking deregulation, consolidation, and corporate cash holdings: U.S. evidence, Journal of Banking and Finance 1/ April (2014). Francis, Bill; Hasan, Iftekhar; Wang, Haizhi


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Francis, Bill; Hasan, Iftekhar; Wang, Haizhi 
Number of authors
Status Published
Year of publication 2014 
Date 15.04.2014 
Name of article Banking deregulation, consolidation, and corporate cash holdings: U.S. evidence 
Name of journal Journal of Banking and Finance
Volume of issue 41 
Number of issue 1/ April 
Pages 45-56 
Abstract This paper tests the effects of banking deregulation on the cash policies of nonbanking firms in the United States. We document a significant and negative relation between intrastate banking deregulation and corporate cash holdings. We show that the negative relation is driven by financially constrained firms, especially by constrained firms with low hedging needs. Further, we construct indexes measuring the intensity of bank consolidation in local markets. We find that the intensity of in-market bank mergers is negatively related to corporate cash holdings. However, in-market bank mergers in highly concentrated markets tend to be positively related to corporate cash holdings.
Free text descriptor in English Banking deregulation; Banking consolidation; Cash holdings 
JEL-codes G21; G32; G34 
ISSN / e-ISSN 0378-4266 
auki Internet addresses
Additional information Available online 6 January 2014.