Citation

Discussion Paper Details

Please find the details for DP433 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Banks and Securities Markets: Corporate Financing in Germany and the UK

Author(s): Ian Alexander and Colin Mayer

Publication Date: June 1990

Keyword(s): Business Finance, Corporate Finance, Dividends and Investment

Programme Area(s): Applied Macroeconomics

Abstract: This paper compares corporate financing in the German bank-based and UK market-based systems. Large German firms pay out a lower proportion of their profits as dividends and finance a larger proportion of their investments from retentions. German banks extend more long-term finance to medium-sized firms but UK firms raise more new equity. The paper tests alternative theories of corporate finance. It finds no relation between finance and taxation, and information theories only receive limited support. Instead, it concludes that control models of corporate finance are consistent with observed patterns of finan.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=433

Bibliographic Reference

Alexander, I and Mayer, C. 1990. 'Banks and Securities Markets: Corporate Financing in Germany and the UK'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=433