Abstract
We combine existing balance sheet and stock market data with two new datasets to study whether, how much, and why bank lending to …rms matters for the transmission of monetary policy. The …rst new dataset enables us to quantify the bank dependence of …rms precisely, as the ratio of bank debt to total assets. We show that a two standard deviation increase in the bank dependence of a …rm makes its stock price about 25% more responsive to monetary
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