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Corporate bankruptcy and banking competition: the effect of financial leverage Image In our recent working paper, we study the effect of a change in banking competition on firms’ bankruptcy rates in the United States. We know from empirical evidence that banking competition typically decreases interest rates, makes it easier for firms to access bank credit (Boyd and De Nicolo 2005), and leads to economic growth (Jayaratne and Strahan, 1996). Kerr and Nanda (2009) further show that following episodes of banking deregulation, entry and exit of firms increase, reinforcing Schumpeterian competition and increasing firms’ innovativeness (Chava et al. 2013). However, there are also drawbacks linked to banking competition. Indeed, banking competition could reduce banks charter values, which in turn would decrease incentives to monitor and screen borrowers (Keeley 1990; Hellmann et al. 2000). Furthermore, banking competition might lead to a deterioration of lending rel ....
Well. have you gotten any relief there? when you start talking trade, there is a trade issues that we are facing. i want to recognize that the administration is a took it upon itself and took the tough road to try to deal some issues that agriculture is facing in relation to trade deals. the first thing that happens is it jumps into a tariff sort of battle. we know farming income across the country is at a low point. we are less than 50% of the end, where we were in 2013. bankruptcy rates are higher than they have been in the last decade. from a specific tart cherry standpoint, in the last fiscal year we lost over 10% of our growers and processors. leland: when you say lost 10%, that means the guys who drive the trucks and low forklifts, the people who work on the refrigeration machine, all out of a job now? that s correct. ....