@techreport{NBERw4408,
 title = "Corporate-Finance Benefits from Universal Banking: Germany and the United States, 1870-1914",
 author = "Charles W. Calomiris",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4408",
 year = "1993",
 month = "July",
 URL = "http://www.nber.org/papers/w4408",
 abstract = {Limitations on bank consolidation and branching in the United States at an early date effectively limited the scope of commercial banks and their involvement in financing large-scale industry, and increased information and transaction costs of issuing securities. In contrast, German industry was financed by large-scale universal banks who maintained long-term relationships with firms, involving ongoing monitoring and disciplining of management, and underwriting. Low costs of German industrial finance are reflected in lower investment banking spreads on securities issues and a higher propensity to issue equity relative to the United States.},
}