Doctor of Philosophy (PhD)



Document Type



In this dissertation, I study how credit supply conditions impact corporate policies of client firms in the context of the Gramm Leach Bliley Act, which changed the way how banks can interact with their client firms. Chapter 1 of this dissertation provides new evidence on how using the same bank for multiple financial services impacts corporate financing and investment decisions of newly public firms. Specifically, I focus on services provided by commercial banks that expand into other lines of business such as securities underwriting, venture capital investing, and asset management. Theoretically, firms could either benefit from a repeated interaction with a bank or be exploited by a dependence on that bank. I find that using multiple services of the same bank, particularly lending and securities underwriting, significantly increases post IPO debt issuance and investment expenditure relative to firms without such a relationship. In addition, such firms are able to operate with lower cash holdings after the IPO. The results are robust to a series of tests including the two-stage Heckman selection model, the difference-in-differences approach, and the instrumental variable method.

In Chapter 2, I study how the payout policy and cost of debt of a firm are affected by the presence of a financial institution that serves both as the bond underwriter and the shareholder of this client firm. The informed investor hypothesis argues that those banks should have an incentive to facilitate the access to debt through lower underwriter fees and encourage management of its client firm to increase share repurchases. In this study, I find that firms with so-called “dual participant” banks have higher levels of share repurchases. Furthermore, I find that those banks facilitate the access to the bond market by charging lower underwriter fees to their client firms. The results of this study suggest that financial intermediaries who are dual participants in a firm have superior information on their client firms.



Committee Chair

Song, Wei-Ling



Available for download on Friday, March 12, 2027