borrowing rate and rely on bank finance, whereas large firms have access to cheaper bond finance. We show that an increase in … credit frictions induces firms to select into bank finance, which attenuates the negative implications on product variety and …

This study explores the influence of supervisory powers and structure of a banking supervisor on the bank's risk … countries, from the Bank scope during 2002 to 2015. Using the Hierarchical Linear Modeling (HLM), findings revealedthat banking … supervisionreducesthe moral hazard of bank's risk-taking in non-crisis affected countries, either allocated supervisory powers are low or …

The theory of the optimal-consumption leisure choice under price dispersion describes the phenomenon of moral hazard as …