TY  - JOUR
AU  - Calomiris,Charles W.
TI  - Corporate-Finance Benefits from Universal Banking: Germany and the United States, 1870-1914
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4408
PY  - 1993
Y2  - July 1993
UR  - http://www.nber.org/papers/w4408
L1  - http://www.nber.org/papers/w4408.pdf
N1  - Author contact info:
Charles W. Calomiris
Graduate School of Business
Columbia University
3022 Broadway Street, Uris Hall
New York, NY 10027
Tel: 212/854-8748
Fax: 212/316-9219
E-Mail: cc374@columbia.edu
M2  - featured in NBER digest on 1993-12-01
AB  - 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.
ER  -