Gibson, Michael S. - Federal Reserve Board (Board of Governors of the … - 1996
affect its investment behavior, after controlling for stock market valuation and cash flow. However, among the subset of bank …-dependent firms, investment was lower by over 50 percent at firms that have one of the lowest-rated banks as their main bank. Because … non-bank-dependent firms, the aggregate effect on business investment in 1994-95 that I identify is tiny. These results …