摘要：Many countries prohibit large shareholdings in their domestic banks. The authors examine whether such a restriction restrains competition in a duopolistic loan market. Large shareholders (blockholders) may influence managers’ output decisions by choosing capital structure,as in Brander and Lewis (1986). For the blockholder,debt has an additional benefit:it "disciplines” a manager by reducing the amount of free cash flow from which the manager can divert funds. The authors show that an economy with blockholders often leads to a more competitive banking sector. Hence,a restriction on the size of blockholdings can have anti-competitive results.
