TY  - JOUR
AU  - Kerr,William
AU  - Nanda,Ramana
TI  - Banking Deregulations, Financing Constraints, and Firm Entry Size
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15499
PY  - 2009
Y2  - November 2009
UR  - http://www.nber.org/papers/w15499
L1  - http://www.nber.org/papers/w15499.pdf
N1  - Author contact info:
William R. Kerr
Harvard Business School
Rock Center 212
Soldiers Field
Boston, MA 02163
Tel: 617/496-7021
E-Mail: wkerr@hbs.edu

Ramana Nanda
Harvard Business School
Rock Center 221
Boston
MA 02163
E-Mail: rnanda@hbs.edu
AB  - We examine the effect of US branch banking deregulations on the entry size of new firms using micro-data from the US Census Bureau.  We find that the average entry size for startups did not change following the deregulations.  However, among firms that survived at least four years, a greater proportion of firms entered either at their maximum size or closer to the maximum size in the first year.  The magnitude of these effects were small compared to the much larger changes in entry rates of small firms following the reforms. Our results highlight that this large-scale entry at the extensive margin can obscure the more subtle intensive margin effects of changes in financing constraints.
ER  -