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Are Bigger Banks Better? Firm-Level Evidence from Germany
Politicians, policymakers, and consumer groups in the United States and Europe have recently turned their attention to the increasing size of large tech companies and the market share that those firms capture. While attention is focused on tech giants, another industry is experiencing a similar phenomenon: large banks keep getting bigger. Despite the supposed systemic risk that such institutions pose, large banks continue to grow in size and influence. Despite dispensing bailouts and other rescue measures during episodic financial crises in recent decades, government agencies continue to allow—and in some cases encourage—such growth.
Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany
As many readers have likely experienced, the sudden loss of a key manager or executive can have a negative impact on a firm, whatever size. Now imagine a large loss of experienced and knowledgeable managers across a country’s economy. In such a case, one might expect aggregated negative effects, with the country suffering measurable negative economic outcomes.